BOSSES at an engineering firm which is shutting down its North-East operation rejected an offer to save jobs, it emerged last night.

The Torrington plant, on Yarm Road industrial estate, in Darlington, will be phased out over the next 12 months with the loss of 104 jobs.

The announcement has been described as a devastating blow to the region's economy. But regeneration chiefs have revealed that they had offered to work together with the ailing Torrington operation in an effort to stave off job losses at the start of the year.

A spokeswoman for regional development agency One NorthEast said: "At the beginning of this year, One NorthEast put a proposal to Torrington Engineering.

"It involved the agency, with the support of the Tees Valley Partnership and Darlington Borough Council, purchasing the Yarm Road site and assisting the company in relocating to more cost-effective premises elsewhere in the Tees Valley, so avoiding closure. The company declined the offer."

As a result of the decision, production at the site - which manufactures roller bearings for use in mining and construction - is to be switched to Ploiesti, in Romania.

International steel company Timken took over the company last month, but could not continue production at Yarm Road.

Representatives of engineers' union Amicus are in talks with Timken about the future for workers.

The future for the Yarm Road site, which Timken will sell once the plant is sold, remains uncertain, but borough council officials have already begun a review of its potential.

Council leader John Williams said last night: "At the council, we are obviously very disappointed that the job losses have occurred.

"We have been maintaining close contact with the company in the run-up to the announcement and will be contacting the company again to see what help we can offer."

Darlington College of Technology was aiming to make Torrington the site for its new £30m premises last year but had an offer refused by the company.