ENGINE manufacturer Cummins is outsourcing its logistics business.

Autrans, which already carries out materials handling functions for car manufacturer Nissan's Sunderland operation, is to take over the function at the Darlington Cummins plant.

Cummins employs nearly 750 people at the Darlington plant, including about 70 in materials handling.

They include forklift truck drivers, storemen and packers.

While all the staff affected by the decision are expected to be offered jobs at Autrans, it is expected that some will choose to stay at Cummins. A small number may also consider voluntary redundancy.

Gerry Hunter, regional officer for the AEEU/Amicus union, which represents workers at the plant, said: "We have held formal discussions with Cummins over the transfer of the materials handling division to logistics company Autrans.

"Autrans already provides similar services to Nissan and Komatsu, and it is expected to take over the Cummins role from June this year."

He added: "It has been agreed that anybody who does not wish to transfer to Autrans, will be offered alternative employment at the plant. Those who do not wish to transfer and who do not want alternative employment, will be considered for voluntary redundancy."

Cummins has identified all the people affected by the changes and has embarked on a consultation process, expected to last three months.

The Darlington plant needs to make about £7m worth of savings after being hit by a shrinking export market and tough economic conditions.

About 120 jobs have already been cut at the plant in recent months.

A spokesman for Cummins, said: "This change is part of a refocusing of our operations in Darlington.

"Orders for Cummins diesel engines remain high, despite the current economic conditions, and the outlook for the plant, which has been the subject of a multi-million pound investment programme, is secure."