WHAT could be the final death knell for railway manufacturing in York was sounded yesterday with the announcement that Thrall Europa is to close down.

At its height, the industry was the biggest employer in the city, with thousands working at the old carriageworks site in Holgate Road.

But in the 1980s the industry went into sharp decline and the former British Rail Engineering plant was closed down in the early 1990s.

Five years ago Thrall Europa opened on the site as a partial saviour - but that is now set to close in December with the loss of 260 jobs.

Parent company Trinity Rail GmbH said closure was inevitable because there were no foreseeable further orders when the company completes a five-year contract to build 2,500 wagons for English, Welsh and Scottish Railways (EWS).

President Chris Schmalbruch said: "We very much regret having to make this proposal, which would result in the loss of 260 jobs and closure of the plant in December.

"But we have had to make the closure proposal due to the fact that, upon final delivery of the five-year contract, there are no foreseeable further orders from any customers in the UK rail industry.

"At present, there is no demand for wagons from anyone in the UK at levels to sustain this plant, which can only build for the UK market, due to restrictions on physical size of wagons for shipment from Britain.

"The company is doing everything possible to assist its York workforce and consultation with employee representatives is being progressed by the company's human resources director."

The company said Trinity would continue with a UK presence by maintaining a sales and marketing presence as well as a service parts business.

It would also carry out a full after-sales service for wagons currently and previously built by the company and supplied from Britain. These activities would be "likely to be based in Yorkshire" but it did not say where.

York's assistant director for economic development, Tony Bennett, said: "I am very disappointed, given all the support and hard work that has been given over the past five years."

He said he would be seeking urgent talks with Thrall and also the owners of the site, partly seeking clarification on whether the after-sales service could be based in York. The authority would be doing everything possible to ensure manufacturing continued on the site, if possible rail manufacturing.