A MANAGEMENT buyout has saved more than 180 jobs at a troubled electronics factory in administration since March.

Circatex, in South Shields, South Tyneside, which makes printed circuit boards, shed 350 jobs after administrator Tenon Recovery took over the running of the company.

The company, which was formed from a management buyout from a subsidiary of US company Viasystems, blamed a downturn in the global market and stiff foreign competition for its problems.

On Saturday, Tenon Recovery announced the management buyout for an undisclosed sum.

Ian Kings, of Tenon Recovery, said: "Over the last two months, under the protection of administration, Circatex has continued to trade and is now trading profitably.

"The survival of the business, and the sale to incumbent management, represents the final touch to the administration process.

"The sale has preserved more than 180 jobs in the local area and has resulted in the retention of world-class skills in the area of printed circuit board manufacturing in the UK."

Mark Beesley, the new managing director, said the European electronics industry had changed substantially, as had customers' needs.

He said: "We recognise this, and Circatex has been transformed as a smaller, more agile business that retains all its core capability in advanced technology manufacturing."

Gerry Hunter, regional officer for the Amicus union, described the buyout and the saving of jobs as wonderful news.

However, he said: "It is sad for those people who were made redundant in March. It has come too late for them."

The union is taking legal action for the workers made redundant, claiming unfair dismissal and breach of contract.

Circatex was formed in 2001 with a Government grant of £3.75m after Viasystems (Tyneside) collapsed.

Last autumn, workers at the plant, which once had more than 600 staff, voted to accept a ten per cent pay cut along with 37 redundancies to help the company stay afloat.

The plant's history has highlighted the instability of the North-East electronics industry as changes in global demand and cheap overseas competition affect the markets