THERE was another blow for the region last night with the news that the axe is hanging over two troubled engineering firms.

Sloman Engineering, of Newton Aycliffe, County Durham, has been in the hands of receivers KPMG after its Midlands-based owner L Gardner placed all five of its loss-making automotive subsidiaries into receivership in January.

KMPG senior manager Richard Voice said last night the company would close in a matter of weeks unless they received a viable offer which would enable it to continue trading.

The firm, which was established 14 years ago and manufactures engine parts to customers including Cummins in Darlington, has already laid off 35 of its 126 workers.

Staff at Sloman, which owes about £2m to creditors, have expressed concerns about a company share scheme they paid in to and Mr Voice advised them to contact the account holders, the Halifax and the Nationwide.

Meanwhile, 30 staff at Roto Zip UK, in nearby Spennymoor, are understood to have been sent letters inform- ing them with regret that the factory is to close in about six weeks. Managers were in meetings yesterday to discuss the closure, for which a date has yet to be fixed.

US parent company Roto Zip Tool Corporation has been losing money at the plant which makes precision power tools.

Fierce competition in the power tool market and a general economic downturn are thought to be among the contributing factors to the closure.

Gerry Hunter, regional officer with engineering union Amicus, said the latest developments were worrying.

The manufacturing industry in the region has suffered a series of blows including the laying-off of more than 900 staff last year at Black and Decker and the recent closure announcement at Torringtons in Darlington.

Mr Hunter said: "County Durham cannot afford to lose any more jobs.

"Manufacturing is already in intensive care and we are desperate for things to turn around."

Workers with sufficient length of service at both Sloman and Roto-Zip should be entitled to statutory redundancy payments.