WORKERS at Black & Decker were last night facing a crushing blow with hundreds of jobs at its North-East operation poised to be axed.

The power tool company is thought ready to move production at its Spennymoor plant in County Durham to Eastern Europe - a decision described as a "bombshell" by the region's development chiefs.

The move - which is likely to see production switched to the Czech Republic - threatens the future of 1,400 permanent and temporary staff at Spennymoor, which is next door to the Prime Minister's constituency.

The news will be a cruel blow to a local economy already decimated by closures and redundancies. Rothmans, Electrolux and Thorn Lighting have all announced large scale cutbacks in recent years.

Further afield in south Durham this year, Glaxo has announced 400 job losses at Barnard Castle over the next two years. In August, almost 150 jobs were lost with the closure of the Blue Circle cement works in Weardale. And last year, Sanyo closed its Newton Aycliffe plant with the loss of 280 jobs.

Last night, various agencies, including One NorthEast, the Government Office North-East, Durham County Council and Sedgefield Borough Council, were braced to expect "significant" job losses at Black & Decker.

Talks have also been taking place in the US and the UK over plans for a possible closure as part of an on-going restructuring programme.

The Northern Echo understands that managers at the Spennymoor plant - which opened in 1965 - are being briefed today about job losses with an announcement to workers expected to follow.

The firm's worldwide manufacturing vice-president, Robert Schwarz, is also flying in from the US to meet management at Spennymoor.

A spokesman confirmed that restructuring plans for the plant had been under discussion.

He said: "There are plans under discussion to further secure the future of Black & Decker Spennymoor as a major manufacturer in County Durham.

"We are working in a very difficult environment and are working hard to remain competitive at Spennymoor."

Last night, it also emerged that senior Sedgefield Borough Council members, including leader Brian Stephens, had been called to a meeting today with chief executive Norman Vaulks to discuss the situation.

One hundred jobs went last year at Spennymoor and further losses have followed.

As recently as 2000, the plant employed 2,300 people making 14 million tools a year. Three quarters of production was exported.

Staff say the plant is gradually being run down with permanent workers being replaced by temporary staff.

Sedgefield Borough Councillor Alan Hodgson, who finished at the plant last year, said: "The company plays its cards very close to its chest usually. They seem to have been winding things down over the last year and full time staff have taken redundancies when they were offered.

"At the same time Black & Decker has invested a lot of money in the plant, but that does not mean anything these days.

"If it is a complete closure they are talking about, it would be a disaster for the area."

Black & Decker has been moving production from the US and Britain to Mexico, China and the Czech Republic where it says it can operate more cost effectively.

Sales of Black & Decker products in Europe and the US fell last year amid a worldwide economic slowdown.

Spennymoor currently concentrates on producing high-value De Walt tools, which are used by professional tradesmen.

But it has begun a leased manufacturing operation in Usti, in the Czech Republic, for low cost drills and power tools previously manufactured at at Spennymoor.

It is thought the facility could now mop up the remaining production in County Durham.

Earlier this year, Black & Decker's European president, Ian Carter, sparked fears of a pullout from the UK after telling Tony Blair that a delay in joining the euro would blunt the firm's competitive edge.

Derek Cattell, regional organiser with the GMB, said: "There have been rumours circling around for weeks that bad news was on its way and the warning signs have been there.

"If it closes, the knock-on effects will be wide ranging as there are a number of companies dependent on work from Black & Decker."

Durham County Council spokesman Fraser Davie said: "We would not make any comment about any company contemplating making job losses in relation to its workforce until the company has made an official announcement."

No one was available to comment at Black & Decker's worldwide headquarters in the US last night.