SANYO is struggling to find a buyer for a North-East factory set to close at the end of the month, with the loss of hundreds of jobs.

The company announced earlier this year that it was shutting its microwave oven operations in Newton Aycliffe, County Dur-ham, and Thornaby in Teesside.

It has since placed the Aycliffe site on the market with an overall price of £2m.

But, despite a number of inquiries, there has been no firm interest yet in the site, which it is hoped could be put to a new industrial use.

David Simpson, general manager at Sanyo Electronics UK, said they believed the current uncertainty over economic conditions was putting off potential buyers.

He said: "The response has been disappointing and all we've had is inquiries from land agents looking to take details of the site."

The Aycliffe facility was bought by Sanyo 13 years ago and comprises an assembly area, a fabrication unit and greenfield development land of just over an acre.

It is being marketed by the County Durham Development Company (CDDC) with the aim of securing new jobs for the area.

Sanyo, meanwhile, says production is continuing "with difficulty" at the Aycliffe site, which closes on November 30.

Bosses have praised the cooperation of staff who had to be sent home for two days this week due to problems with the supply of parts from home and abroad.

It is aiming to complete its order book before the last day of production, but may keep on some staff after this date if that is not possible.

A total of 284 staff are employed at Aycliffe and a further 31 at Thornaby, which is a leased site and will be vacated by Sanyo.

More than a quarter of the entire workforce has found work and is ready to start new jobs next month, the company says.

A job club is also in place, which aims to help those losing their jobs find employment.