DOZENS of workers could lose their jobs at one of the world’s oldest cable makers, The Northern Echo can reveal.

AEI Cables, in Birtley near Chester-le-Street, County Durham, have also confirmed they cannot rule out the closure of the site, which employs 240 people, in the “worst scenario.”

The company would not confirm how many redundancies are to be made, but GMB union told The Northern Echo they believed at least 100 jobs are set to be axed.

A spokesman for AEI Cables confirmed the company had met with GMB union representatives and all employees to inform them they were entering a “period of consultation to discuss possible redundancies”

He said: “The company has been making significant financial losses for a long period of time and only continues to function with the financial support and guarantees of its parent company.

“The company believes that profitability is possible only with a fundamental restructuring and a marked improvement in productivity.”

In a statement, the company said it wanted to reassure its customers that “business will continue as normal” and that all orders will be fulfilled “for now and the foreseeable future.”

The statement went on to say: “The company could not say how many redundancies may be necessary until the statutory consultation period is complete, and it could not rule out closure of the site in the worst scenario.

“We will consider all proposals for avoiding the redundancies and reducing the numbers affected including sale of the business as a going concern.”

Two years ago, the future of workers at AEI cables was secured after the company was bought by Dubai-based Ducab.

That move came after AEI was forced to lay off more than 100 workers in 2011, when volatile copper prices and cheaper imports hit trading.

Tom Allison, regional organiser for GMB Union, said workers were “shocked and disappointed” by the announcement.

“We have strong concerns and reservations about having just 45 days to engage with this, especially as people were aware of the financial issues facing the company.

“We have to be prudent and reasonable and look for a solution” he added.

AEI Cables previously designed power cables for the Royal Navy’s Queen Elizabeth class aircraft carrier programme.

The carriers were designed to be the largest and most powerful surface warships ever made by the Royal Navy and had double the capacity of any previously built aircraft.

AEI have also been involved in projects at Manchester Airport and the Queen Elizabeth Hospital in Birmingham.