A CAR parts manufacturer last night remained tight-lipped about redundancies as it announced it had gone into administration.

Vickers Pressings Tolwood Automotive (VPTA), which is based in Newton Aycliffe, County Durham, and has sites in Newcastle, Wolverhampton and Walsall, has appointed KPMG, in Leeds, as administrators, it emerged yesterday.

However, KPMG said the business continued to trade and it was hoped it could be sold as a going concern.

Earlier this year, VPTA chief executive Geoff Marshall said the company was planning to create jobs, and to make sure there was secure, long-term employment there.

When asked by The Northern Echo last night about the jobs implications of the administration for its 300-strong workforce, neither KPMG or VPTA would comment.

The automotive components manufacturer makes a variety of products used in the car assembly industry and, in the past, has counted Ford and Nissan among its biggest customers.

The company was created earlier this year following a merger of Tolwood Limited, in Newton Aycliffe, and Vickers Pressings, of Newcastle.

In February, it said it planned to increase sales, double turnover and increase staff numbers in what Mr Marshall described as a boost for the region's struggling manufacturing industry.

But last night, managing director Steve Joyce would only say: "I can't make any comment at all. I can't say anything about jobs. We may be in a position to say more next week."

Richard Fleming and Graham Newton, from KPMG's corporate recovery arm, were appointed joint administrators by VPTA's directors.

Mr Fleming, a partner within KPMG corporate recovery, said: "The business is continuing to trade as normal and we hope to sell it as a going concern."

VPTA is the latest casualty of an increasingly-tough car parts market. In February, neighbouring factory Presswork Metals closed its doors with the loss of 95 jobs.

Presswork supplier Middridge Precision Engineers, in Shildon, County Durham, followed it into liquidation soon afterwards, with the loss of ten jobs.

And multi-national components manufacturer Elring Klinger announced 60 job losses - a third of its workforce - at its plant in Redcar, east Cleveland, as it moved more work abroad.

In recent months, economic conditions have become tougher, with raw materials costs rising sharply.