Black & Decker last night moved to defuse fears that it will move its North-East operation abroad unless Britain signs up to the euro.

The company, one of the biggest employers in County Durham, came under fire following comments by the firm's European president, Ian Carter.

Such a move would be a huge blow to the region, signalling the loss of more than 2,000 jobs.

Mr Carter, was reported to have told the Prime Minister in private meetings that his firm wanted Britain to join the single currency.

And he warned: "We have already transferred our outdoor product lines from Spennymoor to the Czech Republic as part of a global review.

"The euro will certainly play a part in any decisions we have to make in Britain."

Executives at the County Durham plant have dismissed jobs fears claiming the future of the plant is not dependent on the euro.

But they stopped short of giving an unconditional guarantee on the future of the UK operation.

Plant Manager Barry Bloomer said: "The euro is among many issues that affect our business and we have been debating it for a number of years.

"Membership of the euro is a political decision and as such is being addressed by the Government."

Fears about the future of the plant were aired in January when the company announced that six jobs were being axed.

This came on top of more than 100 job losses last year as part of an ongoing restructuring programme, with 12 administrative posts also lost.

The company has also moved some of its production at the Spennymoor plant to its Suzhou base in China.

Black & Decker workers have appealed to bosses to calm job fears and reassure them of their job security.

A 46-year-old setter on the production plant, who did not want to be named, said: "We have had rumours for so long we just need to know where we stand. It would be devastating for so many families here."

Durham County Council's director of economic development and planning, Mark Lloyd, said the comments were a major cause for concern

He said: "We are working closely with Derek Foster MP to establish if the threats are real.

"We are in regular contact with the local management and hope that we can work with them to see off any threat to the Spennymoor operation."

The comments have yet again fuelled the row over the uncertainty of the euro, which many North-East companies have urged the Government to embrace in a bid to safeguard thousands of jobs.

Hugh Morgan-Williams, chairman of the Wearside-based Canford Group, said: "It is possible that other companies will follow suit if Black & Decker does go abroad. It would be a massive confidence blow to the region."