THOUSANDS more jobs are at risk as a result of Black & Decker's decision to switch power tool production abroad, the region was warned last night.

Regeneration bosses and union leaders said the loss of 950 jobs at Spennymoor, County Durham, would have a devastating knock-on effect on scores of suppliers and out-source companies in the region.

They said the cutback - exclusively predicted in The Northern Echo on Thursday - could hit a further 3,000 jobs.

The warning came as union officials prepared for crunch talks with electronics company LG Philips that could decide the fate of 1,000 workers in nearby Durham.

Jobs at the company's TV tubes factory would be lost if management decide to switch production to a new factory at Hranice, in the Czech Republic.

A leaked document last month appeared to confirm their worst fears.

Alan Scott, plant union convenor, said officials from Amicus were preparing for talks with European management on October 18.

Although unions are convinced they have a good case, Mr Scott admitted: "They can employ five people in the Czech Republic for the salary of only one British worker. It's hard to compete with that."

LG Philips also receives a $5,500 bounty for every job it creates and does not have to pay taxes to the Czech government for a decade.

The foreign plant will manufacture 2.5 million TV tubes each year - the same as the Durham plant - but has the capacity to make ten million tubes a year.

Mr Scott said: "We're worried they will switch production when the Czech facility is up and running. Black & Decker shows what could happen."

LG Philips refused to comment ahead of the discussions.

Black & Decker announced on Thursday that 550 permanent workers and 400 staff on temporary contracts would lose their jobs by the end of next year. Production is being transferred to the US company's new plant in Usti also in the Czech Republic where workers earn an average of £260 a month.

Last night, unions warned that thousands more North-East jobs could be affected by Black & Decker's decision.

Derek Cattell, regional organiser with the GMB union, said: "The true scale can not be seen until you take into account all the knock-on effects for other businesses."

For every one job lost at Black & Decker, unions believe a further three could be lost in the supply chain and local economy.

Stewart Watkins, executive director of the County Durham Development Company (CDDC) which helped in the fight to keep 450 jobs at the site, said: "We will be doing everything we can to help suppliers because some will be losing a lot of work.

"There could be a few dozen companies in the County Durham area affected."

A partnership, including key regeneration, education and local government figures along with Bishop Auckland MP Derek Foster, has already begun working on ways forward.

Part of their remit will be to help the dozens of North-East businesses who supply or out-source parts for Black & Decker, such as transport and packaging firms.

A spokesman for the Government Office North-East said the next stage was to continue working closely with the company and the other agencies involved to implement the financial package.

The package is understood to comprise more than £1m in taxpayers' cash, which is yet to be formally ratified.

This will be used to buy back one of the two production facilities at the Spennymoor site.

The site will be turned into an enterprise area for small businesses.

Those working to help secure the future of staff, suppliers and out-source companies include: the County Durham Development Company, Job Centre Plus, Durham Learning and Skills Council, Government Office North-East, Durham County Council, Sedgefield Borough Council, One North-East and Bishop Auckland MP Derek Foster.

Yesterday, Mr Foster said two ministers had telephoned promising all the help the Government could give.

"We have all worked hard to at least save the number of jobs left," he said.

"What we are now concerned with is finding these people new jobs and making the site attractive to new investors."