Electrical goods giant Black & Decker is to axe almost 1,000 jobs and transfer work to the Czech Republic, the company announced today.

About 550 production and office jobs will be cut from the factory at Spennymoor, Co Durham, by the end of 2003.

The contracts of 400 temporary workers employed to manufacture goods for seasonal demand will not be renewed.

The company said today that because of increasing numbers of low cost imports from the Far East it was transferring assembly and packaging operations from Spennymoor to a new plant in the Czech Republic.

The product transfer will begin this month and is expected to be complete by the end of next year.

Black & Decker said the redundancies would be achieved through a voluntary redundancy scheme and, "where necessary", compulsory cuts.

Workers affected by compulsory redundancies would be offered help in finding other jobs and the company said it would try to redeploy employees to other sites.

The redundancies will leave about 450 people at the Spennymoor plant which will focus on the manufacture of motors and components as well as the design and engineering of new products.

Barry Bloomer, the Spennymoor plant manager, said: "Black & Decker is a global business and as a world class design and engineering centre the Spennymoor plant will continue to play an important role in its future.

"We will maintain our manufacture of motors and components for plants around the world and will remain the home of European purchasing, supply and reconditioning operations." Mr Bloomer added: ''Global competitive pricing pressures have been a key factor in our decision to make these changes.

''Although the next 12 months will be challenging we will provide full support to those affected by the changes. Everyone here is committed to ensuring the competitive future of this plant and we will continue to focus on highly skilled, highly technical work.''

The company said it had been working closely with the Department of Trade and Industry and local development agencies to provide an assistance package to help retrain workers as well as secure the future of the plant.

Black & Decker also has a factory at Maltby in Yorkshire and a head office in Slough, Berkshire, but these will not be affected by today's announcement.

The plant at Spennymoor makes a wide range of goods including drills and strimmers.

The company is expected to complete the transfer of its work from the UK to a new plant at Usti in the Czech Republic by the end of next year.

John Edmonds, general secretary of the GMB union said the announcement was ''devastating'' for the workers and for UK manufacturing.

''Once again we see a British company unable to compete with foreign competitors because they are effectively attempting to do so with one hand tied behind their backs.

''It is another example of why there needs to be an early campaign over the single currency.'' Jonathan Blackie, regional director of Government Office North-East, said: ''The announcement of these job losses at Black & Decker is a great blow for the North East as the Spennymor plant is one of the region's biggest manufacturing sites.

''We do not underestimate the impact this news will have. However, some of the high-skilled, high-quality jobs are staying at Spennymor and this must be welcomed.

''We at the government office and the Department of Trade and Industry have worked hard with One North-East and Durham County Council to agree a package with Black & Decker and we are pleased that this will safeguard the plant and 450 jobs.

''Government agencies in the region will work with Black & Decker to provide those affected with advice and assistance to help them find new employment.'' He added: ''We hope that as many of the redundancies as possible will be on a voluntary basis.''