MORE than 40 workers face an uncertain future after chemicals company Synetix pulled the plug on a major contract.

The former ICI firm has terminated a five-year agreement with Dytech Corporation, based in Hunwick, near Willington, County Durham, and now plans to switch the work to its operations in Clitheroe, Lancashire.

Dytech supplies powder catalysts to the Teesside firm - the deal is understood to be the sole contract carried out by the 43-strong workforce.

The contract will run to the end of the five-year agreement, ending on June 30, next year.

Derek Cattell, GMB regional organiser, last night said it was extremely bleak news.

Synetix - bought from ICI by Johnson Matthey last year - has a long-term lease on the Hunwick land and buildings and plans to shift its entire plant and equipment to Lancashire.

Chris Cooke, senior business projects manager, said: "This decision has been reached as a result of a strategic review of the manufacturing asset base within Johnson Matthey (Synetix), and is in no way a reflection on the commitment and performance of the Dytech team at Hunwick during the past four years.

"The intent is to more closely integrate the Hunwick manufacturing capability into the manufacturing facilities at the Synetix site in Clitheroe."

A Dytech spokesman said: "As far as the company is concerned this is an unexpected development and we are at a very early stage of assessing its implications.

"We will keep all employees appraised as and when further information is made available to us."

The GMB Union is in consultation with Dytech to see if alternative work can be found for the staff.

Dytech is part of the Dyson Group, which has Dyson Refractories operating next door to the threatened plant.

Mr Cattell said: "The future looks extremely difficult for the workforce.

"Fortunately, we have more than a year's notice to try and discuss alternatives to closure or moving people to other employment.

"This news comes hard on the heels of other job losses in the Wear Valley area such as Blue Circle Cement."