UNCERTAINTY surrounds scores of rail jobs after an engineer – which just months ago submitted plans for a new factory - admitted work could be shifted to Sheffield, The Northern Echo can reveal.

About 40 staff at Progress Rail, based in Darlington, could face redundancy.

Bosses say they are considering changes to ensure “optimal manufacturing efficiencies to best serve customers”.

It comes after Darlington Borough Council planning officials last year granted the business permission to build a new factory and associated offices on the town’s Faverdale industrial estate.

The Echo understands a local builder had been lined up to oversee the project.

A source close to the firm last night told The Northern Echo it was their understanding around 60 jobs could be affected, with the company’s existing base on Darlington’s Dumfries Street expected to close by the middle of summer once outstanding projects are carried out.

They added: “All operations are being transferred to a supersite in Sheffield.

“Although no redundancy notices have been served, the process is in motion and the reason no notices have been put in place is because there is a workload in the factory that they require completing.

“The process of a complete closure will begin in April, May time.”

The business is part of the Caterpillar organisation and known for supplying a raft of rail parts, with Progress’ background in rail and transit system products.

A spokesman said the proposals would allow the company to improve operations but said no final decision has yet been made.

He added: “Progress Rail is contemplating the potential relocation of its Darlington fabrication facility.

“It is reviewing the feasibility of co-locating its Darlington operations with the company’s Sheffield facility, which manufactures specialised track sections, to ensure optimal manufacturing efficiencies to best serve customers.

“The company has held discussions with its Darlington employees and has indicated a possible outcome of this review could result in the potential closure of the Darlington plant and the transition of work to Sheffield.

“As a result, there is a risk the company may have to make redundancies.

“However, the company will explore ways of avoiding compulsory redundancies and minimising the number of employees affected.

“Progress Rail appreciates employees’ dedication and values their continued focus on working safely and effectively to meet our customer needs during this difficult time.”