THE fate of about 250 workers at a North-East manufacturing company looked uncertain last night after it emerged the company had gone into administration.

Pressworks Metals, of Newton Aycliffe, County Durham, confirmed that administrators were called in on Friday after the business ran into financial difficulties.

The factory, in Durham Way South, produces pressings and mouldings for the car industry.

Bosses have told the employees they want to find a buyer to safeguard the jobs.

Administrators Grant Thornton, of Newcastle, said Pressworks was continuing to trade as normal and that it was keen to find a purchaser.

However, Grant Thornton said it needed the backing of the company's leading customers if it was to go ahead with the search for a prospective buyer.

A spokesman for the administrators said: "We are currently in discussion with several of its main customers. There are six or seven key clients in the automotive industry who we need the approval of to go ahead with this."

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

Workwise Personnel, in Bishop Auckland, said it had instructed agency staff not to go to work there following the news that it had gone into administration.

It said that it was still waiting for confirmation from Pressworks. The company, believed to be about 30 years old, manufactures precision pressings, mouldings and sub-assemblies.

A spokeswoman last night refused to give many details but confirmed administrators had been called in. She said there were no plans for redundancies at the present time and denied that agency workers had pulled out.

She said the firm was working as normal at present. "Other than that we don't have anything else to say."