ALMOST 200 jobs will go at one of the world’s oldest cable makers.

Staff at AEI Cables were yesterday told they will be made redundant.

The loss-making company confirmed it will stop manufacturing at its site in Birtley, near Chester-le-Street, and instead operate as a sales-only business.

Dave Anderson, MP for Blaydon, described the announcement as a “debacle”, adding it marked a “sad day” for North-East industry.

The Northern Echo can reveal two offers were made to buy the 175-year-old cable maker last year, with one seriously considered in the run up to Christmas, before being rejected as it was not a “viable offer”.

A spokesman for AEI Cables refused to comment on the offers but did confirm the majority of the company’s 198 employees will leave before the end of the week, with approximately 40 staying on until the beginning of March.

A further 13 sales and administration staff will remain after September at a location yet to be decided.

Mr Anderson, who visited AEI Cables last year to meet bosses, union staff and “depressed, stressed and down in the dumps” workers, said he was upset at the news.

He said: “I am not hugely surprised by this debacle.

“(However) I am very concerned the responsibility of redundancies is being taken from the employer and passed on to the taxpayer.

“I have no problem with using the public purse strings to support people, but it should be avoided if it is because of liabilities of a company.”

Mr Anderson said workers were told before Christmas their jobs would be secure over the festive period, with further talks planned for the new year.

He said he also offered to speak to Middlesbrough-born Business Secretary Greg Clark to try and find a solution, but claims bosses didn’t “appear to be interested”.

He added: “The union had expressed grave concerns over the financial situation and the approach to the consultations.

“These are the best cables in the world – it is a sad day.

“I just feel for the workers – I have been there myself and it is a horrible situation.

“It is almost a certainty that the sales jobs will not be based in Birtley.”

A spokesman for AEI Cables said officials were forced into action due to issues with its bottom line.

He added: “The company has been losing money for some time and, following careful consideration of other options to avoid or reduce the number of potential redundancies, it was necessary to either find a buyer or to cease production.

“Despite significant investment in the plant over the last two-and-a-half years, profitable production levels have not been achieved. With unviable output levels and without a buyer, we deeply regret manufacturing operations will have to cease.

“We will be providing guidance to those being made redundant.”

In November, The Northern Echo revealed an unnamed potential buyer put had in an offer to buy the Birtley site, which opened in 1950.

AEI, bought in 2014 by Dubai-based Ducab, previously warned the site could close after a restructuring plan was rejected.