RISING energy costs and a loss-making order were last night blamed for the demise of a circuit board factory.

Administrators from Ernst & Young have been called into Circatex, which employs 210 people, at its site in South Shields, South Tyneside.

The company, which makes printed circuit boards, has previously been known as Plessey, Interconnection Systems and Viasystems, before its change to Circatex following a management buyout.

Hunter Kelly, partner at Ernst & Young, said: "Circatex is a respected operator and has a strong blue-chip order book. However, the business has suffered from significant losses during 2005, mainly due to a loss-making contract that completed last summer, and increases in energy prices.

"Despite having successfully reduced energy consumption to counter the price increases and a strong quality order book, the business has been unable to overcome the pressures caused by these losses."

Talks are being held with the firm's principal customers and suppliers to find a way forward.