CONSERVATORY manufacturer Amdega yesterday announced it is to cut 70 jobs.

Amdega, of Darlington, employs 370 people, and is shedding the jobs despite an upturn in its fortunes. The company recorded its most successful year in 2002, with turnover increasing 13 per cent to £26.8m.

Managing director Colin Taylor said last night that the redundancies, which are in the technical design and manufacturing departments, were because the company had moved its business away from the US market following the September 11 terror attacks.

He said: "We took a strategic decision to put our priority on the UK market. The business we have lost has been more than offset by the business that we have gained in the UK. The outlook for 2003 remains extremely positive."

He added that the complicated and expensive designs the firm sold in the US had been very labour intensive.

"The business we have replaced that with is nowhere near as labour intensive," said Mr Taylor. "The business has got more orders but we do not need the same number of employees for the products we are selling in the UK.

"We are saddened that a number of employees will have to be let go."

Paul Ramshaw, GMB union shop steward at Amdega, said talks would start in earnest today to try to save jobs.

He said: "It was quite a blow but we are doing all we can to soften it. It is not all doom and gloom. We have got a few things to put to the company and are all very positive about what can be done."

Darlington MP Alan Milburn was told of the company's success in November when he visited its Faverdale factory.

He said last night he was disappointed by the news, adding: "I'm hopeful that the company will be able to pull through this difficult time and that they have turned a corner. Hopefully, the remaining workforce will be reassured by the company's promising future."