ENGINE maker Cummins has axed 65 more staff in a latest round of cost-cutting measures.

Bosses at the plant in Darlington said shop floor assembly workers, who are employed on temporary contracts, were being made redundant from the start of next month. They blamed shortfalls in its order book with orders down ten per cent on the spring figure.

Earlier this month, The Northern Echo revealed how managers at the plant were carrying out an operating review and were refusing to rule out further job losses.

Cummins had announced in July that 52 temporary staff were losing their jobs in an effort to reduce costs.

In November last year 95 jobs were lost.

David Spackman, human resources manager at the Darlington plant, said European customers of Cummins were cutting back because of tough new EU regulations on exhaust and noise emissions.

This was coupled with Far East customers, particularly in China, running down their stocks as they approached the year end.

Cummins was working with local union officials to help minimise the impact of the job cuts.

Those who were leaving were being offered redundancy packages.

Mr Spackman said: "Order levels are at their lowest in the five years that I have been here.

"It is disappointing to lose staff, but we hope and believe that the only way is up.

"There is no difficulty with our underlying business. The product strategy is sound and we do not see any long-term issues in the economies that our customers are working in."

Cummins has offered some hope to workers by claiming that one of its biggest customers, Leyland, could be about to increase its order book, having recently increased its market share.

Its DAF trucks are fitted with Cummins diesel engines.

Workers at the Darlington plant have just completed a two-week holiday shutdown, but once back in full production about 210 engines will be produced on a daily basis.

Cummins' US parent is thought to be less willing to bail the UK operation out of its current difficulties because of pressure in the US domestic market.