ENGINE-MAKER Cummins last night confirmed it could have bought the doomed Sloman engineering company.

Cummins said it had been in talks with receivers at Sloman, Newton Aycliffe, which is about to close with the loss of 100 jobs.

But it failed to pursue an interest, and with no deal agreed, receivers said they had no option but to close.

Sources at Sloman, which has been a key customer of Cummins, manufacturing machined engine components, have said a six figure offer was made for the firm by an unnamed third party.

But it is thought that it fell short of the figure receivers KPMG were looking for.

Sloman, which is £2m in debt, is owned by L Gardner, of the West Midlands, which put all five of its loss-making subsidiaries into receivership earlier this year.

From the five, only Sloman has failed to be sold as a going concern.

Last night, a worker at the plant, who did not wish to be named, said: "We were the jewel in the crown and not one person, even among the management, thought we wouldn't be sold, particularly when we have so much work at the moment and good customers." A spokesman for US owned Cummins, which employs about 700 people in Darlington, said Sloman was an important supplier for many years and was held in "high regard".

He said: "When the company was offered for sale, Cummins was approached about the possibility of purchasing Sloman.

"However, engine components of the type manufactured by the company are an area of engineering in which Cummins has ceased to be involved with and has no future plans for.

"We had hoped that the Sloman holding company would find some way to keep their plant open - but this shows just how difficult it is for UK engineering companies to operate successfully in the current economic climate."

Richard Voice, of receivers KPMG, said it had "tried its damnedest" to sell Sloman.

He said: "We have a duty of care to the creditors of the company and there were no bids at a level that was acceptable."

Councillor Bill Waters, lead member for regeneration at Sedgefield Borough Council, said said: "This is another body blow.

"We have had Black and Decker, Rothmans, Electrolux, Sanyo, we just don't know when it is going to stop."