A CEMENT company closed yesterday with the loss of 31 jobs.

Despite having to turn down orders, it is understood the Cemex plant, in St Helen Auckland, County Durham, was still running at a loss.

The company had already laid off 12 staff, with most of the remaining 19 leaving yesterday.

A skeleton staff remains at the site, which makes precast concrete products, including railway sleepers, until the end of the week to finish off orders.

A spokeswoman for the company said: "As part of our longterm strategy to strengthen the future of Cemex and improve our performance in the UK we have been reviewing our precast business.

"We have carefully assessed all possible options and regret that production at St Helen Auckland will cease from today, with 31 colleagues being made redundant.

"The company has been liaising with local precast companies to help find alternative employment and reviewing possible transfers within the company.

"For the next two weeks, colleagues will be encouraged to attend out sourced training courses provided through Cemex."

Regional organiser for the GMB union Gail Johnson said: "The company said that any orders coming in couldn't keep it going, the orders wouldn't cover the losses it was making. Obviously, we are disappointed by any closure - especially for a rural area of the Wear Valley."

The site was part of the Ready Mix Concrete group bought by Cemex in March 2005.

The company warned in June that year that 150 jobs could be lost across the North-East as part of plans to reduce its 7,000-strong UK workforce by 750.

Ms Johnson said she was aware of other closures elsewhere in the country that had either happened or were under consultation.

A worker at St Helen Auckland who did not wish to be named said staff were told about ten weeks ago that the plant, in St Helen Way, would close on April 30.

He said staff did not blame their immediate management but rather the Cemex parent company.

The worker said: "Some staff have been there 20 or 30 years.

"We were sent home today at 11.30am. I don't want to badmouth the management, they have been sold down the river as well.

The plant's concrete railway sleepers and crossing bearers were used in high-speed, mainline railway tracks to Network Rail specification.