70 jobs may be lost as firm feels pressure from Asia

The entire workforce at Warner Electric, in Bishop Auckland, was told yesterday that the firm was entering a consultation period to review its ongoing viability.

A statement from the firm blamed "continued and sustained pressure on costs from Asian sources".

The announcement was the latest blow to an area which was left reeling by Black and Decker's decision to axe 950 posts at its Spennymoor plant last month.

Staff at Warner Electric, which manufactures industrial brakes and clutches, were given a letter which said that in order to remain competitive it "must focus the majority of its manufacturing activities in Asia".

Warner Electric is a US-owned subsidiary of the Colfax Power Transmission Group. It has plants at three sites in Europe - in addition to Bishop Auckland it has sites in France and Germany.

The County Durham employees were told that the level of business could not sustain all three outlets.

Action has already been taken in France to tackle the problem but this in itself was not sufficient.

The company refused to comment on the detail of the consultation period until its conclusion.

As the Bishop Auckland plant employs fewer than 100 staff it is not obliged to run the usual 90-day process but it is understood the firm is abiding by statutory regulations.

The company will be working with respective agencies in the region to assess whether or not the plant has a future.

A spokesperson for regional development agency, One NorthEast, said: "We understand that consultation is to take place and we will be looking to play a full part in this process over the coming weeks."

Staff will be looking to local organisations and individuals to help find a satisfactory solution.

Derek Foster, Bishop Auckland MP, said: "I have been in discussion with the company. I am also having discussions with the various Government agencies to see what can be done to assist and to retain the jobs in Bishop Auckland.