COMPETITION from abroad is being blamed for an engineering firm's decision to axe 40 jobs.

CN Hadley has manufactured components for the chemical, oil and gas industries since it was founded in Darlington in 1933.

The family firm moved to the nearby village of Middleton St George in 1960 and went on to establish a worldwide reputation, employing more than 100 people.

But dwindling business in recent years prompted bosses to announce yesterday that the company would fold on October 31.

Its Dinsdale Works site was sold to Wimpey Homes for housing last year, but bosses still hoped to continue trading elsewhere in the Darlington area, or on Teesside.

But joint managing director John Hadley said: "At the time, we were intending to relocate somewhere in the area, but the fact is that our sales and profitability just aren't there and we have been advised to close down.

"The problem is that we have got a lot of cheap foreign imports coming in from places like India that have really hit the business."

A skeleton staff will stay on the site, which is earmarked for a residential development, throughout November to continue clearing away.

Engineers' union Amicus/AEEU has been involved in talks aimed at helping the workers following the closure.

Mr Hadley, whose grandfather founded the firm, said: "The average length of service has been about 19 years per person. It's a very loyal workforce. It's a sad decision which we had tried to put off for a couple of years."

After a hugely successful period in the 1970s, the workforce was cut to 80 during the following decade and further still in recent times.

Wimpey Homes has submitted proposals to Darlington Borough Council for 16 houses to be built on the Hadley site and a decision is expected soon.