THE Cleveland Bridge factory is awash with rumours right now. It is not surprising, as next month the number of workers on the shop floor will drop to its lowest level for four decades.

Workers, and others in Darlington who remember the engineering firm's heyday as the world's premier bridge-builder, want to know what the future holds for it.

The steel fabricating company that built Sydney Harbour Bridge has been rocked to its foundations by a bitter row with Multiplex, its former boss at Wembley, which is likely to end up in the High Court.

Some fear that what should have been Cleveland Bridge's ultimate triumph - involvement in the £757m national football stadium - could lead to its downfall.

"There is a lot of speculation about what is going to happen," said a source who asked not to be named. "The real worry is Cleveland Bridge will become a project management team as opposed to a manufacturing unit."

However, that suggestion is hotly denied by Brian Rogan, Cleveland Bridge's deputy managing director, who is full of fighting talk when asked if the firm can survive.

"We acknowledge that these are difficult times for us," he said. "But we have had tough times before and fought our way through them and we believe we'll fight our way through these times to a long and prosperous future."

He adds: "I can absolutely assure you there is no plan to run the factory down.

"The shareholders of the company are right behind it and want it to survive as a manufacturing force.

"If we don't get there, it will be because we have been unsuccessful in winning work. But we are confident we will." Mr Rogan revealed that the company has a current order book containing projects worth almost £40m.

They include:

* A two-year road strengthening project at Tinsley Viaduct, South Yorkshire, that has six months to run.

* A £7m contract to build two bridges at Paddington rail station, London, over 12 months.

* A £15m order for steel fabrication for bridges in the Philippines.

* Work at the Buzzard Oil Field in the North Sea, including steel fabrication for an off-shore platform.

* A £5m bridges contract in an M25 widening scheme that has another 15 months to go.

The firm is the preferred bidder for a £4m contract to fabricate steel for footbridges near the new Wembley Stadium, due to start next January.

It is also bidding for other lucrative contracts, which it is hopeful of securing.

But Mr Rogan admits the collapse of the £60m Wembley deal has left the company at its lowest ebb in "many a long year", with only half the work it expected to have between now and Christmas.

Ninety five workers are to be made redundant and a week-on week-off shift system for the remaining workers at Darlington began on Monday.

He says the Wembley contract inflated the workforce "so everybody is judging us on an artificially inflated figure.

"If and when we get back on our feet, we hope to be back to our normal workforce of 200."

He admits the wrangle with Multiplex over millions of pounds, which Cleveland Bridge claims it is owed, has done nothing for its image.

But he said: "I think when we win our High Court writ, we will be totally vindicated."

Mr Rogan blames the collapse of the deal on Multiplex which, he says, failed to come up with design information it was obliged to provide. "That involved us in extra costs."

He will not be drawn on whether there is any chance - as the GMB and Amicus unions hope - of a reconciliation with Multiplex and a return to the project.

But Gerry Hunter, of Amicus, remains upbeat about that and Cleveland Bridge's long-term future.

"There is a big stake in this town in that company and we want it to survive. Darlington needs Cleveland Bridge and I am positive it can pull through," he said.

"There are so few people in Europe who can do what Cleveland Bridge can because not only can they design, they can manufacture. They have the whole party piece."