A STREET lighting manufacturer last night announced the closure of its North-East factory with the loss of about 100 jobs.

Transmission & Lighting (T&L), part of the Balmer Lindley Group, said it was moving production from Newton Aycliffe, County Durham, to its only other plant in Scunthorpe.

The group blamed increased costs and energy prices for the closure of the factory on the Newton Aycliffe Industrial Park.

The majority of workers were told of the situation on Tuesday - exactly two years after Prime Minister Tony Blair opened the factory - and were sent home.

Only a handful of workers are still on site to finish work before the shutdown in a few weeks.

T&L said some workers had been given the opportunity to transfer to Scunthorpe.

In a statement, group chairman Steve Norris said the company had "reluctantly concluded" that the pole manufacturing business would have to relocate.

"We do very much regret the loss of manufacturing jobs in the North-East," he said.

"Unfortunately, the impact of unprecedented price increases, particularly in metal supply and energy markets since the opening of the Newton Aycliffe plant, has left us with no viable alternative."

He said the group's street lighting and electrical contracting business was unaffected by the closure and would remain in the Newton Aycliffe area.

T&L moved into the former Sanyo factory in 2003, with managing director Steve Balmer investing £1.5m in the site.

The company also received a £700,000 Regional Selective Assistance grant from One NorthEast.

The regional development agency last night expressed its disappointment and said it would be discussing whether it would recover any of the grant money.

"This is undoubtedly a blow to the workforce and the area," said a One NorthEast spokesman.