SAMSUNG sacked its North-East workers yesterday claiming Western European plants were no longer cost effective - at the same time as the company announced record profits running into billions.

The Korean corporation provoked an outcry after it emerged the Teesside plant was to close despite a worldwide shortage of the products it produces.

Bosses also announced plans to set up a new European base in Slovakia where the average wage is only £1.50 an hour.

The announcement came on the same day that jubilant company bosses in Korea announced record profits of $1.57bn in the three months to December.

Sales rose 22 per cent to $10.92bn, driven by demand for digital cameras, notebook computer displays and desktop monitors - the same monitors as manufactured at Wynyard on Teesside.

The group rubbed further salt into the wounds of British workers by announcing $6.7bn for new overseas production lines to make more computer monitors this year.

Bitter North-East staff claim the company has pulled the plug because workers in China and Eastern Europe are prepared to do the same job for a fraction of the cost.

The electronics company appeared to confirm that belief last night. It said that UK wages - which average £5.50 an hour - had played a major part in the decision. Workers in China receive about 50p per hour.

Reports in the Far East said the company had acted because the factories in Western Europe were losing their edge because of location and cost effectiveness.

Bizarrely, a Samsung spokeswoman also blamed worldwide demand for Teesside's flat panel monitors as the reason for closing it. She said: "Because demand for high-quality flat panel products is going up, they are becoming cheaper.

"We have to take these kind of radical measures to ensure our products compete in the market."

The axe also fell on workers in Barcelona, Spain, where production is transferring to Slovakia and China.

Kim Young-jo, the man heading Samsung's European restructuring, said the move would raise competitiveness.

Last night, Samsung revealed a buyer had already been found for the UK site. The spokeswoman said: "It is a local company which wants to take on the whole site. An announcement will be made in the next ten days."

The Northern Echo understands the buyer is freezer recycling company JCM, which already operates out of another ex-Samsung plant in Billingham.

The news did nothing to temper criticism of the company that promised thousands of jobs when it received £10m grants to come to the region in 1995.

Davey Hall, Amicus regional secretary, said: "The employees have been badly let down. They have been eliminated even though the company has made record profits."

Stockton North MP Frank Cook, who was instrumental in persuading Samsung to come to the region, said: "I cannot hide my bitterness. I am sure this feeling will be shared by workers and their families.

"Samsung had the red carpet treatment at every turn. Over the past nine years the company has failed all of us."

* Sir John Hall has reiterated his plans for a new business park on land adjacent to Samsung. If it goes ahead the scheme has the capacity to create up to 20,000 jobs.