A MICROELECTRONICS firm has denied rumours it is closing a North-East plant and sending work to the US.

Compound Photonics says it remains committed to its 115-job factory at Newton Aycliffe, County Durham.

The rejection came amid claims the business was looking to “cut its losses and move on” following product failures.

According to one worker, the company’s plant is also now up for sale, with outstanding production trials expected to switch to Compound Photonics’ US base in Phoenix.

However, Richard Jackson, chief operations officer, last night said the firm was focused on strengthening operations at Aycliffe, adding its order book has work for at least the next six months.

He also confirmed it wasn’t looking to move production to the US, where it has a number of sister factories, adding it was in talks to prolong deals.

He told The Northern Echo: “We are working hard with existing customers and looking for partnerships to extend these contracts.

“The company has no plans to move production done in Aycliffe to the US.”

However, one worker, who asked to remain anonymous, said people were becoming increasingly anxious over their futures.

They said: “A number of staff are very apprehensive.

“Nothing has gone right with production, (there’s been) failure of the technology, a lack of support from phone giants and no interest in this type of product we are trying to make.

“The owners are wanting to cut their losses and move on, the plant can be sold.”

The firm makes semiconductors, which are used in the aerospace and defence sectors and support radio frequency work for communications operators.

Back in 2014, Mr Jackson told The Northern Echo the business wanted 100 workers to support growth into various markets, including high-resolution projectors.

However, the company since admitted it has faced some financial concerns, with latest accounts filed on the government’s Companies House database revealing its intention to seek extra funding to meet a growth plan.

Bosses added the matter was something it has overcome in the past and Mr Jackson emphasised it was looking to the future.

He added: “We have a six-month order book and we are working through that with the partners.”

Compound previously took on the Aycliffe plant from RF Micro Devices, when that company took work back to the US.

The base was classed as the world’s most advanced microchip factory when it was officially opened for Fujitsu by the Queen in 1991.

However, the building closed when Fujitsu buckled under a worldwide collapse in memory chip prices.

It was subsequently bought by Filtronic, which makes and supplies antennas and e-band transceivers that increase mobile phone mast performances and network data carrying, before being taken on by RFMD in a £12.5m deal nearly ten years ago.