ENGINEERING company Cleveland Bridge's hopes of returning to the £750m Wembley Stadium project appeared all but over last night, as a bitter dispute with the main contractor took a fresh twist.

Multiplex started removing hundreds of tonnes of steel from the company's Darlington site yesterday afternoon - less than two hours before discussions over a possible reconciliation were due to start.

The Australian firm made the move after calling in a bond on the steel for the showpiece stadium's retractable roof. Unions fear the development could end hopes of Cleveland Bridge's continued involvement with the Wembley project.

Outwardly the company was putting on a brave face last night. A spokesman insisted that the move was nothing out of the ordinary and that it still hoped to get round the table for negotiations with Multiplex.

Cleveland Bridge announced earlier this month that it was shedding 95 jobs in the town and launching legal proceedings against Multiplex over money it says it is owed for work done on the stadium.

Union leaders had been hopeful that they could bring about a reconciliation between the two firms at a meeting planned for yesterday afternoon.

But GMB officials said last night that Multiplex cancelled the talks, due to start at 4.30pm, without any explanation.

Removal of the Wembley steel from Darlington began at about 3pm.

Gerry Hunter, of the Amicus union, said that as long as the steel was in Darlington there was a chance of Cleveland Bridge being asked again to be involved in the Wembley development.

"I am bitterly disappointed that the meeting didn't go ahead," he said.

"I see it as significant that the bond has been called in, and that Multiplex are removing the steel and the fabrications."

Jimmy Skivington, of the GMB union, said: "People can draw their own conclusions about what this means.

"It's just devastating for our members. I feel so angry that they have been treated in this way.

"They did not deserve this. They are the best tradesmen in the world at what they do and this is an absolute disgrace."

Cleveland Bridge pulled out of on-site work at Wembley early last month after completing the stadium's showpiece arch.

A spokeswoman said: "There is a bond that sits on the steel that's been fabricated at Cleveland Bridge.

"That's work that has been paid for and there is an obligation for Cleveland Bridge to ship that out."

Multiplex could not be contacted for comment last night.