TRADITIONAL brewing in the North-East was saved from extinction today with the sale of the Camerons brewery to Castle Eden.

But last orders were called on the historic Castle Eden site in Peterlee with the proposed demolition of the building to make room for a housing estate.

The demolition, which will mark the end of more than 100 years of brewing at the site, is the result of a deal by the Castle Eden company to buy Camerons Brewery from Wolverhampton and Dudley Breweries (W&DB)

The deal will see the Castle Eden brewing industry move to the Camerons site in Hartlepool.

There are currently 110 employees at the Hartlepool site and 40 in Peterlee and it is not yet known how the changes will effect them.

David Soley, the managing director of Castle Eden said: "We are bucking the trend. There are a lot of breweries closing but we are keeping regional brewing going.

"When we could have been looking at the closure of two breweries, it's good to see the continuation of one brewery.

"We are putting our efforts into this area and the people of this area."

The deal is conditional on planning permission being granted for houses to be built on the Castle Eden site.

Builders Persimmon, who have expressed interest in the site, have ten days to put a planning application before Easington district council, who will have the final say.

But today Mr Soley said: "We would not be sitting here if we did not believe we were going to go through with it. In three months time we should be ready to go forward." W&DB's managed, tenanted and free trade pubs are not included in the sale which hands the brewing and distribution business to Castle Eden.

Derek Andrew, W&DB's retail managing director said: "We had two options. To sell the Cameron site and let it be developed or to think more creatively to see how brewing could have a secure future.

"We have got many assets in the North-East including our pubs, free trade and take-in sale and it is important that Cameron carries on in some form while consolidating North-East breweries"

Both sides refused to say how much the deal was worth or how many jobs could be lost.

Mr Soley said: "When you add two work forces together there is bound to duplication.

"We want to minimise job loses. We are looking to maximise jobs with eventual expansion. "Now we are going in to review period and we are hoping that majority of the work forces will stay.

"We are looking at retirement and natural wastage and we hope that any job loses will be small. Eventually we want to increase barrellage and so increase jobs When it becomes an unconditional offer we will start looking at jobs.

"There has been a lot of uncertainly for the workers and those we have spoken to are happy with the solution. We have been able to put something to them that looks positive."

One Camerons worker said: "We still don't know what is going to happen but things look brighter."

Part of the deal includes Castle Eden brewing Harp Irish Lager for W&DB for at least eight years and distributing to W&DB and Castle Eden pubs and clubs for at least six years.

Favourites such as Strongarm, Trophy Special, Camerons Bitter, Nimmos and Castle Eden Ale will continue to be brewed at Hartlepool.

Castle Eden also has plans to develop the cask ale market.

The Campaign for Real Ale (CAMERA) is supporting the future of the Hartlepool Brewery but has slammed the sale of the historic Camerons site.

Mike Benner, Head of Campaigns and Communications said: "The announced closure of Castle Eden brewery makes this a sad day for Britain's brewing heritage, brought about by the pessimism and unreasoned short-termism of ill-informed city analysts."

Read more about this story in The Northern Echo on Wednesday.

Updated: 15.20 Tuesday, April 24