THE region could be about to suffer another jobs blow with the closure of a County Durham factory.

Oshino Manufacturing UK, which employs 45 people at its plant in Newton Aycliffe, may have to close at the end of the month.

The Japanese-owned company says that no decision has been made, but added that unless a solution to current problems could be found, the factory will close.

Oshino makes miniature lamps for the motor and aerospace industries. Its products are used for illuminated dashboard switches.

The company invested about £1.5m in its plant, the only one it has in the UK, when it opened on Newton Aycliffe Industrial Estate in 1995.

A company spokeswoman said: "As a result of the strength in the pound, high manufacturing costs and a shrinking market in Europe, consideration is being given to the proposed closure of the factory in the UK.

"The company is currently in consultation with the 45 staff to explore the possibility of finding an alternative solution."

She added: "Any reasonable proposal put forward, or any solution, will obviously be explored and considered very seriously before a final decision is made.

"If no alternative solution can be found, then it is proposed that the factory will be closed at the end of February."

Staff at the factory are said to be devastated by the news that they could be made redundant.

One source, who did not want to be named, said: "The workers found out in a meeting last week and it was totally out of the blue.

"When they were told, people were crying because they were wondering what was going to happen. Nobody has got the heart to work."

The news is the latest in a series of bodyblows for the region's manufacturing industry, which includes the loss of 950 jobs at Black & Decker in nearby Spennymoor.

Councillor Bill Waters, cabinet member for regeneration at Sedgefield Borough Council, said: "The bottom has dropped out of the manufacturing industry and we are going to have to look at attracting alternative employment."

He said the council would do what it could to help, adding: "If we can help to save jobs in the borough, that is what we are here for."