A TRUCK building firm, which received flagship Government cash to fund an expansion, is cutting more than 100 North-East jobs – a year after it axed 300 posts.

The Northern Echo understands about 70 production workers and 45 office staff will lose their jobs at Caterpillar, in Peterlee, east Durham.

The company makes articulated trucks for the mining, construction and aggregate industries, and it is believed a further 70 agency workers were released at the end of September.

The company employs about 740 workers at the plant.

In September last year, it axed 300 agency roles, citing a drop in orders and demand from US and Eurozone buyers. A month later, it was included in a £120m Government Regional Growth Fund payout to help it expand.

The company has a sister plant in Stockton, which makes parts for loaders and excavators used on building sites across the UK.