HOPES were mounting last night that production could re-start at a North-East chipboard factory.

Kitchen worktops manufacturer Vertex, in Shildon, County Durham, made the 120-strong workforce redundant last month, apart from a skeleton staff of 11, after it called in receivers.

But chipboard company Egger UK, of Hexham, Northumberland, last night confirmed it had bought Vertex's two main production lines.

A spokeswoman said: "Egger UK, on behalf of parent company Fritz Egger GmbH, have successfully negotiated with the receiver KPMG for the purchase of a substantial amount of the manufacturing assets of Masistar, formerly Vertex Panel Products.

"The major part of the acquisition relates to the two chipboard lines and chipping, drying and sanding machinery that is currently on the leasehold site."

But she could not confirm whether production would continue in Shildon or whether the operation would be moved to Hexham, or if any redundant workers would be re-employed.

Bishop Auckland MP Derek Foster had been holding crisis talks to try to find a solution to the devastating job losses, another blow to County Durham's manufacturing industry.

The area is still trying to recover from 950 job losses at Black and Decker in Spennymoor, and the closure of Lafarge's cement works in Weardale, where 150 people were made redundant.

Another 80 people lost their jobs when clothing company Barbour announced the closure of its Crook plant.

Former managing director of Vertex, Joe Martoccia, said last night that he was not able to talk about the deal.