JOBS are believed to be under threat at a County Durham engineer.

The Northern Echo understands Grorud is assessing its workforce after changes to a customer agreement.

The company last night said it didn’t wish to comment on the matter.

However, a worker at the firm’s factory, based near Consett, said letters had gone out to staff informing them bosses were looking to restructure operations.

The man, who wished to remain anonymous, said agency staff have already left the business.

He added it was his understanding the changes, which will affect areas such as the tool shop and press shop, are a response to car parts firm Takata dropping Grorud from its supply list.

Takata, which is listed on Grorud’s website as a client, earlier this month agreed to pay a $1bn fine for concealing dangerous defects in its exploding airbags.

It has since set up a steering committee to deliver a restructuring plan.

The worker said: “Everyone is despondent.

“Consett has a big industrial estate but nearly all of the jobs are taken.

“There will be a lot of people going for jobs and not all of them are going to get one.”

The business, which last year said it employed more than 100 people, is known for providing services for the healthcare and automotive sectors, with customers including Sunderland-based car maker Nissan.

Its services encompass metal pressing and pre-production, including design and prototype work.

It also oversees electrophoretic coating, which applies anti-corrosion protection to a range of industrial components.

Last year, bosses at the business, which was founded in the 1950s, said it was primed for growth after a 2015 buyout had created jobs.

At the time, officials said a management restructure left it primed to build on its 60-year history, adding new shop floor practices had strengthened production and opened doors for new contracts.