HUNDREDS of workers were last night facing the threat of redundancy for the second time in three years after a North-East firm was put into administration.

The blow to 520 staff at circuit board manufacturer Circatex is the latest in a long line of failed ventures attracted to the region by millions of pounds worth of taxpayers' money.

The workers have already suffered one period of administration under previous owner Viasystems.

More than 800 jobs were rescued by a management buyout which led to the firm being renamed Circatex.

But, plummeting orders and cheaper rival products have once again caused the company's downfall.

Administrators Tenon Recovery will now be expected to try to sell the South Shields business as a going concern.

Ian Kings, Tenon director, said: "The expected level of future orders has not been achieved and consequently the directors feel that they are left with no alternative but to seek the protection afforded by an administration order."

Circatex's predecessor, US electronics firm Viasystems, was attracted to the region by £17m government aid in 1997. By 2002, it had folded its operations on Tyneside, leaving 1,100 workers out of work.

Government grants totalling £25m attracted Siemens in 1996, but it only stayed for 18 months.

Fujitsu received £17m but ended up pulling the plug on its Newton Aycliffe factory in 1998 after seven years.

Samsung, left 450 workers unemployed after its £10.5m grant-funded vision for an electronic city in Billingham failed in January of this year.

Viasystems's former company accountant Charles Brookes led the management buyout which received a £3.75m grant in December 2001. Staff accepted a 25 per cent pay cut to ensure the buyout succeeded in exchange for a share option in the new firm.

Worse was to come as Circatex was forced to lay off staff and impose further wage cuts as initial demand for its products dried up.