THE region's manufacturing industry has suffered another blow with news that a chemical plant is planning to cut jobs.

Elementis Pigments, in Birt- ley, near Chester-le-Street, County Durham, has announced the cuts as part of a restructuring exercise.

The firm has not specified how many jobs will be lost, but says redundancies are inevitable.

About 150 people are employed at the plant, which produces pigments used in paint and components for car tyres.

News of the restructuring follows a strategic review of operations, which addressed the declining markets for the company's products.

The company has refused to comment on speculation that it plans to move production to China, where it already produces iron oxide and where labour is much cheaper.

A company statement said: "Due to continuing decline in the markets for the commodity zinc products, the loss-making zinc oxide and zinc dust business will be closed.

"Some additional functional restructuring will be carried out to improve customer service and profitability in all areas.

"The implication of this decision is that there will be some redundancies.

"We are not able to give any details on the number or nature of those redundancies until we have consulted with our employees."