THERE was more bad news for County Durham's economy last night when one of the last major employers in Weardale announced it was making about 70 people redundant.

Workers at Weardale Steel in Wolsingham were told not to turn up for work this morning. Only a skeleton staff will remain.

The news is a bitter blow for the dale which recently suffered the closure of LaFarge UK's Blue Circle cement works, with 147 job losses.

The plant, which makes ships' anchors and rudders, was taken over by Eastwood Industries two months ago.

Last night, welder Kenny Lally, who represents the Associated Metalworkers Union, said: "This is dreadful. Lots of families rely on the steelworks. We've been told there is no money for wage arrears or notice pay."

County councillor John Shuttleworth said: "This announcement is another nail in the coffin for Weardale."

No one from the firm was last night available for comment.

Meanwhile, the future of more than 1,000 jobs at electronics firm LG Philips, which has plants in Durham and Washington, will be discussed this month.

Union leaders are demanding to know the company's plans after the leak of an "internal discussion" document, suggesting the plants may be closed and the manufacture of tubes for televisions switched to Eastern Europe.

Prospects at US-owned engine manufacturer Cummins, which employs about 700 staff in Darlington, are said to be "gloomy" after the company last month refused to rule out job losses.

Electrolux at Spennymoor lost 650 jobs in 1999 and fears of further cuts have surfaced since.

Jeff Morland, divisional officer for engineering union Amicus AEEU, said more job losses can be expected as investors continue to pull out of the region.

He said: "I don't want to panic people, but I have to say that many inward investment companies who have enjoyed success over a long period of time are looking to produce products cheaper abroad."