UNION leaders are to launch legal action against a trailer manufacturer, which closes today with the loss of 70 jobs.

Utility International is shutting down its huge premises on the outskirts of Northallerton, North Yorkshire, after going into voluntary liquidation.

But it will still face legal proceedings for alleged "failure to consult" from the engineers' union AEEU/Amicus.

The union claims it was given just one hour's notice of the firm's intention to fold.

Regional officer Gerry Hunter said the case would go to an employment tribunal and any possible award in the union's favour would ultimately rest with the Secretary of State for Trade and Industry.

"On Wednesday, July 3, they Utility declared bankruptcy and our lads were told that afternoon that it was the end of the company," he said.

Many workers have already left, but a skeleton staff is thought to have stayed on until today to complete final orders.

The firm - best known as the former York Trailers - had endured a series of ups and downs in recent years.

In March 1997, when it was York Trailers, the company laid off its entire staff because of a lack of orders.

But it was taken over by US-based Utility a year later and was soon celebrating a £2.5m order, which led to the creation of 80 jobs.

However, Utility was dealt a massive blow when truck rental firm City Trucks folded recently and its liquidators sold off about 2,000 trailers as low as quarter-price.

Hambleton District Council said it had previously been prepared to discuss ways of developing the extensive Yafforth Road site, but its offer of help was never taken up by landowners Wordsworth Holdings.