LEADERS from all types of business came together yesterday to thrash out a plan to save 175,000 manufacturing jobs in the region.

The sector accounts for one-fifth of the North-East economy and yet is beset by redundancies and cutbacks.

The high-powered summit, held at Samsung in Wynyard Park, Billingham, Teesside, was set against the backdrop of British American Tobacco's decision to close its final operations in the region.

The demise of the Rothmans plant in Darlington will lead to 500 redundancies and will impact on an estimated 10,000 further people in both the supply chain and local economy.

The seriousness of the situation was highlighted by the presence of both the chairman and chief executive of One NorthEast, Dr John Bridge and Alan Clarke respectively.

Dr Bridge said the time for talk had passed: "This is not a listening day, it is a doing day."

He reiterated a forecast by Cambridge Econometrics which predicted that by 2010, manufacturing will contribute 25.5 per cent of the North-East gross value added or output, compared with 18.7 per cent in the UK as a whole.

However, the manufacturing workforce is expected to fall from 175,000 to 146,000, a fall of 19 per cent, in the same period.

Dr Bridge said: "One NorthEast recognises that this sector has been facing difficult conditions - intense competition in every market and pressures from a downturn in global demand.

"The purpose of this summit is to shine a spotlight on the skill requirements of the manufacturing sector and determine the best way to meet those needs."

An audit of the sector has been commissioned to determine current and future skills needed by employers.

Mr Clarke said: "Manufacturing in future will have to make a bigger contribution to the knowledge-based economy."

John Slider, managing director of Samsung Wynyard, emphasised the need to create an "environment of enthusiasm".

He told assembled delegates: "You will be amazed at the number of skills shortages that just disappear overnight because people have an innate ability for self development.

"What is lacking is the environment for creating self development."

The final audit report is expected to be released in September.