PRIME Minister Tony Blair's constituency last night suffered another manufacturing jobs blow as a clingfilm factory announced its imminent closure.

Linpac Plastics told The Northern Echo that it intends to shut its film production plant in Sedgefield, County Durham, next month, resulting in the loss of 50 full-time jobs.

The business said it was trading in a "very difficult market" and blamed increased competition and prices for its demise.

The news comes just months after two other companies in Mr Blair's constituency hit financial difficulty, threatening the loss of about 100 jobs.

Canal boat maker South West Durham Steelcraft, which employed 30 staff at its base on Trimdon Grange Industrial Estate, went into liquidation in December, after a prolonged shortage of work and lack of orders.

Just days later, Volante Public Transportation Interior Systems Limited, also in Trimdon, went into administration.

The firm, which employs about 70 people, has since been bought and continues to make interior panels for buses and trains under the new name, Elite Composite Products.

Last night, Linpac Plastics said it was in consultation with its staff over the redundancies. The factory is expected to close late next month.

"This decision has been taken after an in-depth investigation into the ongoing financial viability of the cling- film business and in light of increasing competition, volume capacity and prices in a very difficult market," the firm said in a statement.

"The customer base in the UK is changing and becoming evermore competitive with UK companies moving overseas to seek cost advantages."

Linpac Plastics made 73 compulsory redundancies at its factory in July 2004 after the company admitted it had been making losses over the previous five years, despite investment of more than £1.8m.

"It was hoped that downsizing in 2004 would have been sufficient, however, regrettably this proved not to have been enough to make the plant commercially viable," a Linpac spokesman said yesterday.

"This situation has come about principally through market changes. We would like to thank staff for their hard work over the years. Sadly, we have to face up to new commercial realities, but we will work with our staff to find new opportunities for them."