A JOB-STARVED town in the North-East is facing another blow to its manufacturing industry as another factory faces closure.

The future of 30 workers at Roto Zip UK, in Spennymoor, County Durham, hangs in the balance as bosses in America consider closing the plant.

Staff at the factory, which produces precision power tools, have been told that parent company Roto Zip Tool Corporation in the US is losing money by keeping the operation going. They will be informed about a decision next Friday, at the end of a 30-day consultation period.

The news is a further blow to the town, which is trying to recover from 950 job losses at power tools firm Black and Decker.

Finance director Glen Stapleton said that the UK management team was being as open as possible with the workforce and was still trying to find a solution to the situation.

He said: "The American company bought this factory three years ago to supply the European market.

"Unfortunately, things have not been as successful as we had hoped and a combination of factors, such as competition from both big power tool companies such as Black and Decker and Bosch and recently from small overseas manufacturers.

"A general economic downturn has also affected the feasibility of maintaining a UK branch.

"Our management team is making every effort and considering every option to come up with a way of saving the business, and the jobs."

Durham County Councillor Neil Foster, who represents the Tudhoe ward of Spennymoor, said the possible loss of Roto Zip UK would be a severe blow to the community.

Coun Foster said: "The loss of any jobs in Spennymoor is catastrophic. If this happens it will be yet more disappointment for this area and to the manufacturing industry.

"The county council will work with the company to see what can be done to help in the short and longterm."