FAMILIES in job-starved Weardale were dealt another cruel blow when one of its last major employers announced major job cuts.

Bosses at Weardale Steel, in Wolsingham, told workers that 50 jobs were to be axed at the 133-year-old steelworks last Thursday.

Staff had hoped there was a bright future for the plant, which makes ships' anchors and rudders, after it was taken over by Eastwood Industries two months ago.

Kenny Lally, shop steward for Amicus union, said staff felt betrayed because the company had falsely raised workers' hopes.

Mr Lally, a welder at the works for 29 years, said: "This is dreadful, lots of families rely on the steelworks in Wolsingham.

"We've been told there is no money for wage arrears or notice pay so we will have to wait weeks to get something from the National Insurance Fund.

"I came here 29 years ago empty-handed and I am leaving empty-handed."

The news was a bitter blow for the dale which recently suffered the closure of LaFarge UK's Blue Circle cement works - and with it went 147 jobs.

Durham county councillor for Weardale John Shuttleworth said: "This announcement is another nail in the coffin for Weardale but hopefully some good news is on the horizon.

"In a dale context, following on from the Blue Circle closure, the steelworks job losses represent a bigger blow than Black & Decker does to the whole county."

Government chief whip and local MP Hilary Armstrong said: "Along with the local council and job agencies, I am far from satisfied at how this affair has been handled."

The Wolsingham firm, which started making steel under the pioneering Charles Attwood in 1869, is now in the hands of Sheffield administrators Poppleton, Appleby.

Its managing partner Jeremy Priestley said: "Two of our partners are now running the company, We have advertised Weardale Steel as a going concern and we are hoping to find a buyer."

Mr Priestley said 29 workers would be kept on to complete contracts for Germany and Holland.