ELECTRONICS firm Saia-Burgess last night confirmed it was moving 215 jobs overseas in the face of competition from low-cost economies.

The Gateshead-based company, which employs about 350 people, said it was scaling back manufacturing at its Team Valley site between June this year and August next year.

Swiss-owned Saia-Burgess' business development and innovation facilities will remain on the site.

In a statement yesterday, the company said: "A progressive reduction in manufacturing will take place at the Team Valley site.

"The move is consistent with the company's low-cost manufacturing strategy, and is a continuation of the plan that was outlined to the workforce in the summer of 2005.

"Production will transfer progressively to both Poland and China, resulting in a possible 215 redundancies on the site.

"The company, which manufactures microswitches, has been facing severe price pressures, and the operations at Gateshead have not been competitive on a global basis.

"The Saia-Burgess operation in the Team Valley will instead be focused on business development and innovation and will be staffed with sales, marketing and engineering personnel."

The company manufactures sensors, switches and motors, for industry and the public sector.

Representatives from trade union Amicus will meet management next week to discuss redundancy settlements.

Saia-Burgess also supplies the Ministry of Defence with high-spec products.

Last night, David Bowles, chief executive of Northern Defence Industries (NDI), of which Saia is a member, said: "I am not surprised that Saia- Burgess is moving some production overseas.

"They operate in a very competitive industry where demanding customers expect low-cost solutions.

"NDI has been working with the company for four years on a high technology project for the UK and Swedish army in which the company has played an important role in developing and implementing new technology.

"The project has great export potential and therefore it is reassuring to hear that the business development and innovation functions will remain in the North-East."