TROUBLED manufacturer Pressworks Metals has made 51 workers redundant after one of its main customers withdrew support.
The Northern Echo revealed yesterday that automotive parts maker Brose Limited had pulled out of the firm in Newton Aycliffe, County Durham.
Brose Ltd, based in Coventry, represented between 15 and 20 per cent of Pressworks' business.
Administrators for the company said the loss of business had forced the job cuts.
The staff who have been made redundant worked on the Brose order book.
Joe McLean, from administrators Grant Thornton, said: "This was done for economic reasons alone. With such a big hole in the order book, it was simply not possible to keep these people on.
"We have tried to treat people with respect and consideration, but of course this is a very difficult situation and the priority is to keep the business afloat."
Workers at the plant were informed of the job cuts on Tuesday afternoon, with redundancies taking immediate effect.
The job losses come after Brose removed materials and pressings equipment from the site at the end of last week.
Articulated lorries were loaded with equipment during last Friday's night shift.
Mr McLean said: "It was all above board. This company were taking back what was rightfully theirs, which they are fully entitled to do."
Pressworks went into administration earlier this month, citing rising steel prices for its troubles.
Grant Thornton has been in negotiations with potential buyers for the firm, which produces parts for the automotive industry.
Last week, the administrators were understood to be in discussions with four buyers.
But this week it emerged that only one interested party was thought to be considering putting in an offer for the company.
Mr McLean said of the remaining 190 staff: "Their jobs are in no way secure and we have made staff aware of that. I am trying to be honest with people and treat them fairly. In the meantime, things remain as fluid as they have all month."
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