NORTH-EAST businesses could be backed into a corner by resenting EU officials keen to flex their muscles on trade agreements, a manufacturing boss has warned.

Matt Boyle says he fears the UK could be punished after voters opted for a Brexit.

His worries were matched by those of Mike Matthews, managing director and European operations officer at car parts manufacturer Nifco UK, who said companies must now focus on high-class work to ensure Britain remains at the pinnacle of industry.

Mr Boyle is president and chief executive at Gateshead-based Sevcon, which has factories and offices around the world.

Last month, the business announced a deal worth up to £28m to develop a controller capable of electrifying drive systems for a “household name” supercar company to improve vehicles’ speed.

The firm, which also supplies controllers for the Renault Twizy electric city car, exports the vast majority of its goods, with Europe a strong area of demand.

However, Mr Boyle said that could change once Britain’s departure from the EU is officially sanctioned.

He said: “My concern is that Europe will play hard ball on this.

“They’ll not want any of the remaining members to follow the same path as the UK and that could make for a very difficult transition and unfavourable future European trading arrangements.

“Our staff are naturally concerned; we are a company that exports 99 per cent of what we make with Europe being our major market.”

Mr Matthews, who has overseen the growth of Nifco, which makes plastic components such as door handles and cup holders at its base in Eaglescliffe, near Stockton, reiterated the anxiety.

The former toolmaking apprentice, who is the serving North East England Chamber of Commerce president, said businesses must dust themselves down and rise to the challenge.

He added: “This is as an opportunity to refocus and ensure we make our businesses and country attractive to customers and investors.

“We need to retain focus on developing world-class, highly-desirable products, which will help us remain competitive.

“Superior products, quality and productivity will ensure we continue to sell products, grow our businesses and encourage investors.

“When we target markets further afield than Europe, we are undoubtedly impacted by higher costs, so we must all remain focused on Europe being our biggest market, a market we still have access to.

“This referendum result is challenging news, but we must not let it become a negative in terms of our image globally.”