A FIRM that has been part of life in a North-East village for 140 years has ceased operations, a company director revealed in court.

Leslie Graham confirmed that Weardale Castings and Engineering, in Wolsingham, County Durham, stopped production earlier this month and the workers only remain to clean up the site.

Mr Graham appeared at Bishop Auckland Magistrates' Court on behalf of the company to plead guilty to four breaches of environmental law.

As part of the steelworks' defence, solicitor Mark Quigley said the company would close as soon as the few remaining staff got jobs.

The building used by the firm, which at its peak employed up to 600 workers to build anchors and rudder horns for ships, will be bulldozed to make way for housing and offices.

Mr Graham's solicitor also gave the firm's accounts to the bench and said the company was running into financial difficulties.

The court heard that Weardale had made a £163,000 profit in 2006, but this figure dipped to less than £9,000 last year.

Mr Quigley said: "The steel trade has seen a downturn in demand in recent years.

"The company is at present operating on a skeleton staff who are there to carry out maintenance and cleaning work.

"Once they have secured alternative employment, my client plans to close the plant."

Weardale Castings and Engineering employs 11 people, though two employees confirmed yesterday they are leaving next week.

Justin Hancock, project manager for developers Banks, said work will not start on the site until next year.

He said: "Regeneration is very much a priority for Weardale and the steelworks has been understood not to have been a sustainable business for a number of years. The Wolsingham development will include office blocks and units that will be available for industrial use."

The Environment Agency had accused the company of four counts of failing to comply with environmental laws between October last year and April, which included polluting a sewer and noise pollution. The company was fined £4,800 and ordered to pay £2,226 costs.

Mr Graham was unavailable for comment yesterday.