DISCUSSIONS are under way to buy two frozen food manufacturers which could save nearly 900 jobs.

Workers at Hibernia Foods factories in Stockton and Hartlepool were told the good news at the same time as they were told they would receive their Christmas holiday pay.

Receivers KPMG confirmed they had been approached by separate buyers for the factories, which both make supermarket own-brand frozen desserts.

Exclusive talks have been opened for the Hartlepool Oakeway site, which employs 493 people, and separate talks with another buyer have opened for the Stockton factory, at Preston Farm, which employs 400 people.

The development comes only days after it was announced that Hibernia Food's ready meals factory at Brenda Road, in Hartlepool, had been bought for an undisclosed sum, saving 200 jobs.

Alan Milne, regional officer with the Bakers, Food and Allied Workers union, said it was hoped both sales would be completed in the next few weeks.

He said: "This has been a very rough time for all the staff. Try to imagine what it has been like in the build-up to Christmas, not knowing if you were going to have a job or knowing if you were going to get Christmas holiday pay. So people have been totally elated at the news.

"However, we have thought we had a deal done before and things have gone wrong at the last minute, so we will wait before reaching for the champagne. However, I would say that the receivers have been excellent in trying to save these jobs."

A statement from KPMG said: "While there is still work to do with regard to the Hartlepool Oakeway site, we hope to be able to make an announcement by the end of December. We are pleased to be able to make this important development known to the staff before Christmas. Talks for the Stockton and Bridlington sites will be concluded in the new year."

Hibernia Foods went into receivership in October after accumulating debts of £17.5m.