A PACKAGING operation in County Durham is being sold off as part of a multi-million pound deal.

US-based Pactiv Corporation has sold its Stanley operations to private equity firm AEA Investors.

The number of staff working at the Stanley site has also been reduced, although company bosses insist there have been no redundancies because of the sale.

Instead, numbers of temporary staff have been reduced "in line with the normal course of business".

Pactiv is offloading nearly all its European and North American protective and flexible packaging divisions as part of the deal - worth $530m.

The company's vice-president and general manager for Europe, Peter Lewis, said the move would not affect day-to-day business at the Stanley site.

"We don't anticipate any redundancies from this transaction. However, we have been reducing temporary staff in line with the normal course of business," he said.

"AEA bought the business because it is an attractive investment. They see an opportunity for growth and expansion.

"The management of the business will remain unchanged on a global, European and local level. This is really about new investors."

Mr Lewis said Pactiv sold off these parts of the business, which had sales of $838m and profits of $60m last year, to concentrate on its core business in North America.

The group, which had a turnover of $3.4bn last year, intends to focus on its higher return consumer, food service and food packaging businesses.

Pactiv's Stanley base employs 180 people and manufactures rigid packaging for foods sold in supermarkets and retail outlets, such as salad boxes and plastic shells for Easter eggs.