Fate of workers may be secured

It is understood by The Northern Echo that four potential buyers have come forward with offers for the company, which went into administration at the start of this month.

However the administrators Grant Thornton, of Newcastle, said the sale of the company was still the subject of careful negotiations.

Joe McLean, from Grant Thornton, said: "We have had some offers for the business and we're in discussions with interested parties over the matter.

"We don't want to say much more at this stage because the issue is obviously very sensitive."

He said no time frame had been laid down for finalising a deal but that "we would hope to make an announcement on the future as soon as possible".

Workers at the Newton Aycliffe-based manufacturer have faced an uncertain few weeks after administrators were called in just over two weeks ago.

A local employment agency pulled out its workers from the firm after hearing of the financial difficulties.

However the factory, which produces pressings and mouldings for the car industry, was given the go-ahead by its main customers to continue trading.

Mr McLean said although he was keen to stress negotiations were still up in the air, he was optimistic for the future of the company.

He said: "I'm more hopeful at the moment certainly."

Mr McLean said workers were being kept up to date with the situation and that the most recent briefing with staff took place earlier this week.

Pressworks, in Durham Way South, cited the rise in steel prices as one of the main causes of its financial difficulties.

Two other North-East manufacturers have also blamed steel price rises - pushed up by large demand from China - for recent financial setbacks.

Lionweld Kennedy, from Teesside, was forced into administration earlier this month with the loss of 37 jobs.

While earlier this week County Durham firm Kenmore Refrigeration Components announced it was making 17 of its 300 workforce redundant.