ENGINE maker Cummins has announced that more than 50 jobs are to go at its Darlington plant.

US-owned Cummins, which is one of the town's biggest employers, is axing a number of temporary staff in the latest of a series of cost-cutting measures.

Thirty-nine production and assembly workers will be lost by the end of next month, and a further 13 will follow in September.

The blow has been softened with the news that those affected are being offered work with logistics company Autrans.

Autrans, which carries out material handling functions at Nissan's Sunderland operation, took on the same role at Cummins earlier this year.

It has begun advertising for fork-lift truck drivers and dispatch staff.

Outsourcing of its material handling will save Cummins about $250,000 (£167,000) a year.

David Spackman, human resources manager at the Darlington plant, said: "We are making a lot of good progress on reducing our costs.

"The key thing is that employees who have been with us for many years are staying on the same terms and conditions, although the plans we are implementing are having a negative impact on shorter-term staff."

Cummins has been boosted by the international success of the Leyland DAF T45 truck which is fitted with the company's small diesel engines.

Exports to the Far East have also been doing well in the first six months of the year, although orders overall are slightly down.

The company, which employs about 700 staff in Darlington, has been hit by tough economic conditions.

More than 120 jobs have already been lost in the past year through a combination of compulsory and voluntary redundancies.

Cummins has reassured workers that a decision on whether Britain joins the euro will not impact on the company as the bulk of its trade is in the US.