THE worldwide rise in steel prices has led another North-East manufacturer into financial difficulties, with County Durham firm Kenmore Refrigeration Components declaring job losses.

The Crook-based company said rising steel costs had led to a decision to make 17 of the 300 workforce redundant.

Kenmore, which makes cooling systems for household names such as Electrolux and Whirlpool, said it was unable to pass on the rising costs to its customers.

Two other manufacturing companies in the region have gone into administration in recent weeks, citing steel prices as one of the main causes for their financial difficulties.

The fate of about 240 workers at Pressworks Metals in Newton Aycliffe, County Durham, still hang in the balance after administrators were called in two weeks ago.

Administrators for Teesside firm Lionweld Kennedy said they were still looking for buyers after 37 staff were made redundant at the manufacturer.

Union leaders in the region have called for action to help counter the effects of steel price increases on the North-East economy.

Davey Hall, regional secretary for Amicus, said the union was consulting with manufacturers over how to tackle the effects of the rises.

Manufacturers have complained they are unable to pass on the rises because of fixed-priced contracts.

Global price rises have been blamed on the huge demand for steel from China.