THE crushing blow caused by the closure of a car parts plant was last night cushioned by the news that 180 jobs will be saved in the region.

Workers in Shildon, County Durham, were devastated when Calsonic Kansei announced it was shipping work abroad.

But a multi-agency effort saved the jobs of all but 20 of the factory's staff by encouraging the manufacturer to keep work in the North-East.

Weeks of intense negotiation resulted in Calsonic agreeing to move production to its neighbouring plant in Washington.

The deal was sweetened - and ultimately sealed - by a £249,000 grant from regional development agency One NorthEast.

John Tweedlie, Calsonic Kansei vice-president, said: "The fact that we have had a successful outcome is welcome news and we acknowledge and thank our employees for their support during this difficult time."

One NorthEast, City of Sunderland Council and Tyne and Wear Development Company were all involved in the job-saving effort.

Ged Fitzgerald, Sunderland City Council chief executive, said: "We are delighted to have supported Calsonic Kansei in retaining these jobs in Sunderland and the North-East, and to have secured such an important company as Calsonic Kansei in the city."

Alan Clarke, One NorthEast chief executive, added: "One NorthEast's business team has worked closely with the management team at Calsonic Kansei to bring about a rapid and successful conclusion to the company's bid for a grant to safeguard jobs at the firm.

"The announcement is wonderful news for the vast majority of workers at Shildon and has kept a valuable business in the North-East."

Calsonic, which produced car heaters at Shildon, has suffered the effects of difficult trading conditions in recent years.