UNION officials told of their bewilderment last night after it was revealed that North-East engineering firm Cleveland Bridge was stopping work on the new Wembley Stadium.

The Darlington-based company was due to work on the stadium until its completion in 2006 and was only last week celebrating finishing the Wembley Arch.

But the firm issued a statement yesterday saying it was handing over all site-related works to Dutch company Hollandia.

It was uncertain last night whether the decision would mean more job losses at Cleveland Bridge (CBUK), which announced earlier this year that it was axing almost 250 workers.

Gerry Hunter, from engineering union Amicus, said he was baffled by the news.

"In 25 years, I have never known this to happen with a company that big," he said. "I understand that Cleveland Bridge has a squad of more than 100 on the project. If there is no work for them they will be getting notice to finish."

Jimmy Skivington, from the GMB union, said: "From what I have been told from the shop stewards, it won't affect anything to do with the Darlington works.

"But there are some people from the North-East area down there. It's not a good situation."

Neither Cleveland Bridge nor the stadium's main contractor, Multiplex, which sub-contracts the work, would say why the North-East company was leaving the site.

But a source close to the project has told The Northern Echo that it was Cleveland Bridge's decision to pull out of the deal.

It now has 28 days to hand over the on-site steel erection to Hollandia - although it will continue to provide steel, fabrications and designs for the stadium.

The Cleveland Bridge statement said staff on-site were being informed of the decision.

Multiplex said in a statement that the decision had been taken after weeks of negotiations.

"These steps have been agreed between the parties to ensure the timely delivery of the stadium ahead of schedule," it said.

"Both companies remain totally committed to delivering the world's best stadium."