PRIME Minister Tony Blair's constituency suffered a further manufacturing jobs blow last night as a clingfilm company shed more than half its workforce.
Linpac Filmco, of Sedgefield, County Durham, told its 130 workers there would be 73 compulsory redundancies at the factory, which makes stretch and shrink-film for food packaging and supermarket clingfilm.
The factory has reported losses of £3.8m in the past five years, despite an investment of more than £1.8m by Linpac since it bought the business from Viskase in 1997.
A spokesman for the company said: "We can confirm there will be 73 compulsory redundancies, but a remaining 57 jobs will be saved.
"This is due to a rationalisation of the business because it has been losing money.
"There have been significant changes in the marketplace away from the PVC film products made at the site."
He said cheaper overseas competition was also a factor in the redundancies.
The company said it was providing counselling and support for staff and was liaising with the Transport and General Workers Union.
It is believed that the drop in orders will lead to the company concentrating on its clingfilm business, rather than on food packaging.
A former worker, who did not wish to be named, said orders at the Sedgefield site had started to fall because Marks & Spencer stopped using PVC film in its food packaging.
He said: "They believe there are environmental issues with PVC, which is debatable.
"Some of Linpac Filmco's biggest customers supply to M&S and it has significantly harmed business.
"I would think the future of the business at Sedgefield is in its clingfilm production."
The factory has been providing employment in the Salters Lane Industrial Estate, in Sedgefield, for nearly 40 years. In recent years, numbers of workers at the factory have dwindled from more than 200 to 57 after the latest wave of redundancies.
The job losses are the latest blow to manufacturing in Mr Blair's constituency.
Earlier this year, the Calsonic Kansei car plant in Shildon said it was to close, putting 200 jobs in jeopardy.
At Black & Decker, in Spennymoor, 950 jobs were lost, and there were further losses following the closure of kitchen worktops factory Vertex, in Shildon
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