A TWO-PRONGED bid hopes to head off a factory closure which could result in the loss of 234 jobs.

Ninety-day redundancy notices have been issued to workers at the Texon UK plant at Skelton, Teesside, which makes insoles and linings for the shoe industry.

Representatives of the Transport and General Workers Union are meeting factory bosses on Thursday to thrash out options for saving jobs.

Officials of Redcar and Cleveland Council, which in 1996 gave the company a £20,000 grant - in addition to a £900,000 Government cash boost made in the same year - are also making attempts to set up a meeting with bosses.

Union regional organiser Tim Bush said last night: "We have a meeting with plant management later in the week to get an assessment of what the state the business is really in.

"The company has issued notices to people telling them there are likely to be job cuts which could result in total closure.''

Mr Bush added: "The next stage for us is to speak to the company, to see how bad the problem is and how we can mitigate the closure and maintain a working presence at Skelton. It is 234 jobs in east Cleveland where jobs are not easy to come by.''

He said US-based Texon was one of the biggest employers in the area.

"We have a meeting on Thursday with the company and mean to take a grasp on this, to see what the problem is. The company was fairly circumspect about financial problems. If they are not blaming production costs, there is a problem elsewhere.''

Council leader David Walsh said: "We helped to save this firm in 1996 and would like to do the same again. Our officers are now trying to reach the managers of Texon and try and arrange a meeting to see if there is anything we can do to help keep a base in Skelton.''

No one at Texon could be contacted for comment yesterday, but the company said in a statement that it had entered a consultation period with all employees about restructuring plans.

"This restructuring could result in the closure of manufacturing plants at Skelton, Leicester and Kettering with the loss of up to 458 jobs,'' the statement said.