THE region's manufacturing sector has suffered a double jobs blow.

Up to 100 staff at circuit board maker Circatex and a similar number at Carpets International's yarn factory, in Hartlepool, are to be made redundant.

Circatex told its 659 workers in South Shields that job cuts were inevitable and the remaining staff face the prospect of having their wages cut by ten per cent.

The collapse in the price of circuit boards was blamed for imposing a 15 per cent cut in the company's budget.

The job losses could cause problems for Circatex as it may have to repay a £3.75m government grant awarded 18 months ago to support jobs.

The state aid came in the wake of Viasystems' withdrawal from two sites in North and South Tyneside.

Questions will be raised about the long-term lessons learnt from the Viasystems collapse.

When it went into receivership, Viasystems said the cause was a downturn in orders for circuit boards.

Circatex was established in December 2001 and took over the same factory and workforce.

At Carpets International, the growing demand in wooden and laminate flooring was given as the reason for the reduction in the workforce.

The Bradford firm, which has brand names including Kossett, Wilton Royal and Abingdon, is in the hands of receivers PriceWaterhouse-Coopers.

The company, Britain's biggest carpet manufacturer, employs a further 150 staff in Bradford and 200 in a distribution centre in Hull.

It has 300 staff at a factory in Newbridge, South Wales, and 350 at Donaghadee, in Northern Ireland.