SUNDERLAND plastics component firm Perlos yesterday confirmed plans to make 32 employees redundant.

The company has now started the consultation process with the works council.

Perlos' announcement followed the loss of a major production contract in the technical moulding sector when the customer discontinued the product line.

Some work has also been lost to cheaper manufacturing locations, such as the Czech Republic, this year.

Other external market forces included a slowing down of manufacturing markets globally and the strong sterling exchange rate hampering competitiveness in export markets.

The job losses are at the firm's moulding division at Rainton Bridge South, with jobs being unaffected at its adjacent tooling division.

Perlos managing director Teemu Saloranta said: "This announcement for discontinuing the product came out of the blue. We had just been told a couple of months ago that the contract would go on for the foreseeable future."

"We have invested during the current year more than £1m in a new pharmaceutical clean room moulding facility. We have won new contracts but the main bulk will not go into production until August next year."

Mr Saloranta said the firm's future in the region was sound, due its highly-trained workforce and sophisticated machinery.

He said: "Our moulding machines represent the latest all-electric technology that is fast, accurate and energy efficient. Production is highly automated, with robotic handling of component assembly.

"In addition, we have a very efficient and modern tooling facility that can make world class tools in very short lead times.

"Here, order books are healthy into the second quarter of next year, assisted by a constant flow of orders from Perlos Group in Finland.

"We believe in our future as a successful company, being part of a world beating group, and we remain committed to Sunderland and the North- East as our UK base."