CAR parts manufacturer Calsonic Kansei is closing its plant in Sunderland with the loss of 40 jobs.

A further 29 posts are being lost from a sister plant in Washington, Tyne and Wear, where the company employs 200 staff producing exhaust systems.

Production from Sunderland, which manufactures dashboard gauges, will be transferred to the company's Shildon operation, which currently produces heating and ventilation systems, and employs 300 staff.

Calsonic is also cutting 87 jobs from its main production site in Llanelli, Wales, where it employs 1,100 people.

The losses are the latest blow for the region's automotive supply sector.

In January this year, Sloman Engineering announced 35 redundancies when it went into receivership, and Tallent Engineering announced plans to cut 65 positions.

Both are based at Newton Aycliffe, in County Durham.

The job losses reflect a general downturn in the manufacturing sector in the region.

Calsonic Kansei's managing director, Dave Pallas, said: "This announcement is regrettable, but is absolutely necessary to the continued survival of CK Europe.

"There has been a significant and consistent fall in sales volumes over the past two years, with the most significant impact due to the cancellation of business by Nissan."

He added: "In order to meet our customers' price expectations, we have to drastically reduce the costs in our business.

"In the first instance, this affects the former Kansei plant in Sunderland, now Calsonic Kansei Sunderland.

"The plant occupies expensive floor space that is available elsewhere.

"As a result, that business will be transferred immediately and combined with the CK Shildon plant."