BOSSES hope a management buy-out could save a threatened North-East microwave oven factory.
The Sanyo plant in Newton Aycliffe, County Durham, which employs 284 people, is due to close along with its sister plant in Thornaby, Teesside, subject to a consultation process.
Talks have been taking place over its future ever since Sanyo announced that continued production was not "commercially viable".
The Northern Echo has learned that bosses hope to persuade Sanyo headquarters in Japan to sell the Aycliffe operation as a going concern to a third party.
Management at Aycliffe hope to team up with a European consortium in a bid to take over the running of the plant.
It would continue to make microwave ovens, but no longer for Sanyo.
David Simpson, general manager of Sanyo Electric Manufacturing UK, said: "The sale of the company to a third party is an option, but it is very early days.
"It is positively being looked at and there is some hope."
It is understood that the Thornaby plant, which employs 31 staff, would not, however, be included in the buy-out. Its core product is magnetrons which provide the heating component for microwaves.
Sanyo announced it was preparing to shut down its North-East operation following a global review of its business.
Within days it announced a tie-up with rival Sharp to manufacture microwave ovens for the European market.
It is thought that Sanyo could seek to transfer production to the much bigger Sharp microwave oven plant in North Wales.
Officials from the Amalgamated Engineering and Electrical Union (AEEU) have already said they will consider a plea to Prime Minister Tony Blair in a bid to save the Aycliffe factory.
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