COMPANY bosses have warned that plans for a major housing development on the edge of a market town threaten the viability of their business.

Managers at Allerton Steel Ltd, which employs 135 people and is thought to be the largest private employer in Northallerton, North Yorkshire, are furious that plans for the North Northallerton scheme have been drawn up without officials speaking to them about the implications on their business - although officers at Hambleton District Council say they have had discussions with the company.

Mulberry Homes, Taylor Wimpey and Persimmon Homes want to build more than 1,000 houses on 53 hectares of land, mainly between the A167 Darlington Road and the A684 Stokesley Road, as well as leisure and employment facilities.

Early plans draw up for the scheme, which forms part of the local development framework signed off by the district council in 2011, saw additional space for businesses created beside existing firms based on Northallerton Business Park, including Allerton Steel.

But on the latest maps which were shown to the public during a recent consultation excuse, the employment zone has been reduced.

Instead, plans for an elderly care scheme and and a primary scheme have been included near the business park.

Allerton Steel bosses believe the whole North Northallerton scheme is a mistake, claiming it would effectively "cap" the town's industrial park and limit the occupants' expansion.

However, managing director Giles Penn said the addition of the care home and school within metres of their site was "bonkers".

The company fabricates steel for major construction projects - it produced girders for the Shard skyscraper in London and is currently working on tubular supports for the expansion of Liverpool FC's Anfield stadium.

Mr Penn said it operated 24-hours a day during the week, and produced large amounts of noise, dust and light which would inevitably disturb residents living nearby.

He added that the company has three hazardous cryogenic gas tanks situated just feel from land earmarked for housing.

Eleven years ago, the company moved from a site it had occupied since 1948 in the town's Romanby Road to allow for housing to be built nearby.

And bosses are now worried that their heavy industrial operations will not be compatible with the North Northallerton development.

"We believe it will affect the viability of our business and its long-term ability to employ people and grow," said Mr Penn.

Works manager Steve Robinson stressed that the company employed a highly-skilled and well-paid workforce which was recruited from Northallerton, with staff often joining straight from local schools and colleges on apprentices.

He said he feared the development would lead to the company being deluged by complaints from residents, adding: "We don't want to be shut in five years time because we can't work at night."

In response, Mick Jewitt, director of Hambleton District Council, said the authority understood the concerns of Allerton Steel and its importance to the local economy.

He added: "We expect the planning application for the North Northallerton development to be submitted on Friday, May 29.

"The area in the vicinity of Allerton Steel will only be in outline with no detailed proposals. Any applications for this area will need to be subject of detailed planning applications and further consultation.

"Council officers will be meeting with Allerton Steel to discuss their concerns."