HOPES are high that at least 150 jobs could be saved at a threatened North-East microwave oven plant if a management buyout is successful.

Talks are taking place in a bid to persuade Sanyo Japan to hand over the running of its Newton Aycliffe operation to a third party.

It would be bought by a so-far unnamed bidder, thought to be a current Sanyo customer, and run as a going concern by Aycliffe management.

Redundancy payments for the 284 staff who are set to lose their jobs because of plans to axe the plant are due to be finalised today.

If the buyout is agreed by Sanyo, about 150 people would be immediately re-employed.

The new operation would seek to tap into the higher end of the microwave oven market, rather than the budget models currently catered for by Sanyo.

Bob Cooney, of the Amalgamated Engineering and Electrical Union (AEEU), which represents staff at Aycliffe, said: "The potential, initially, is for about 150 jobs, but if we get a market going to supply our product we could start drawing more people back in.

"We have been working behind the scenes on this for some time to try to get the factory saved.

"We are trying to persuade the powers that be to look sympathetically at our cause."

The union would be bidding to have staff re-employed on the same terms and conditions, said Mr Cooney.

David Simpson, general manager of Sanyo Electric Manufacturing UK, said: "There is encouragement, which is excellent. We think Sanyo Japan has no objections going down this route, and if they do pull out they would want to sell the plant as a going concern.

"We are in the early stage of discussions with our partners and hope that part of any deal would be financed by them."

Those hoping to save the Aycliffe plant have been encouraged by comments from Prime Minister Tony Blair's office.

A spokeswoman for Mr Blair, whose constituency the plant is in, said: "He is being kept informed of developments.

"The Government plans to do whatever it can to help secure the Sanyo plant and its workforce."