US firm DuPont, which employs about 100 staff at its factory in Darlington, is facing a $200m fine over a cancer and birth defects scandal.

DuPont produces the famed non-stick chemical Teflon, used on saucepans, clothing and even buildings.

However the firm, which has employees in 70 countries including 105 at a powder coatings site in Darlington- has been hit by controversy over health fears concerning a key ingredient in the manufacture of Teflon.

Environmentalists in the US have called for the withdrawal of Perfluorooctanoic Acid (PFOA).

DuPont is facing a lawsuit from the US environmental watchdog for allegedly failing to disclose the results of water tests in 1984. It faces being fined $27,000 for every day since 1984 - a total fine of nearly $200m.