A TRAILER manufacturer in Northallerton closes its doors for the last time today, with the loss of 70 jobs.

Utility International, based in Yafforth Road, has gone into voluntary liquidation.

The 90-year-old firm, formerly York Trailers, has experienced several up and downs in recent years but will not be returning from its latest set-back.

Gerry Hunter, regional officer for engineering union Amicus, said: "The knock-on effect from this could be great and it is a real tragedy."

He said the company's decline was due to a massive influx of cheap trailers on the market. This was from rental company City Trucks going bust and the receivers selling off its 2,000 trailers.

He said many employees had already left, but several were staying on to complete work that had been in progress before the announcement.

The loss of the business was seen as a blow for the town. Coun Tony Hall, ward member for Northallerton on Hambleton District Council, said: "It is a sad time for Northallerton.

York Trailers came in and brought engineering skills to a town that existed purely on the food industry. Part of Northallerton was built to accommodate its workers."

The mayor of Northallerton, Coun Jack Dobson, said: "The loss of these jobs to this town is quite a significant blow.

"It seems all has not gone well with them and they have had difficulty selling trailers into Europe. "They have had to take the sad step of actually closing the plant.

"We can only hope that, if all councillors work together, we can get somebody else into the town."

The factory has a chequered history and has been threatened with closure in the past. In March 1997, when it was York Trailers, management laid off the entire staff due to a lack of orders.

A year later it was taken over by US-based firm Utility. The company began an extensive programme of upgrade and expansion as part of a £7m investment.

Eighty jobs were created in April 1998 on the strength of a £2.5m order which, together with other major contracts, increased output to its highest level since York Trailers crashed into receivership in 1991 with debts of £30m.