A CEMENT company is refusing to co-operate with a potential rescue package which could save 150 jobs at at a County Durham works.

The Northern Echo has learned that cement manufacturer Lafarge is shunning a mystery European company expressing a genuine interest in taking over the Blue Circle plant in Weardale.

The unidentified company has a long tradition of cement-making, with strong credentials in the industry and is looking to establish a foothold in the UK.

But despite frantic moves behind the scenes, French company Lafarge has so far shown no signs of opening talks with the company, and frustrations are mounting among trade unions, Durham County Council and a task force set up in wake of the closure announcement last month.

One of the largest employers in Weardale, Blue Circle is due to close its Eastgate plant at the end of April, with the loss of 147 jobs.

Evidence detailing Lafarge's immovable position has been obtained by The Northern Echo. Minutes from an internal meeting last week between the company and union representatives include the employer's insistence that it would "not consider the sale of a cement business. The site has an obligation to go back to original condition".

The impasse can only be broken by talks, says Durham County Councillor John Shuttleworth.

He said: "I know they will not discuss the sale of it as a cement factory. The company must be forced round the table with this European firm - that is the only way things can proceed.

"The clock is ticking, but you have to be optimistic."

Workers, who are still coming to terms with the news that their company is to close, were dealt a further blow last week when they learned that it was the most productive plant in the country.

Lafarge was also accused of slapping ailing workers in the face when it removed Blue Circle industries signs from outside its works and replacing them with Lafarge Cement UK signs.

Now union officials at the plant are refusing to get carried away by this latest twist in the ongoing saga.

GMB works convenor Bill Wilthew said: "We haven't heard anything about this. It could be just another false dawn.

"There have been so many moves and counter-moves that there is no point in building the workers' hopes up, just to crash them down again."

MP for North-West Durham Hilary Armstrong said that, no matter what the outcome for the Eastgate site, the future of the local economy is paramount.

She said: "I have urged the company to meet with anyone who is prepared to intervene.

"But, as I understand it, it is very unlikely they will allow any competitors into the market place.

"There is no point in pretending they feel otherwise.

"Whatever the outcome a way forward must be found for Weardale. Alternatives must be found for the families there."

No one from Blue Circle was available for comment last night.