PRIME Minister Tony Blair has intervened in a David and Goliath battle between the world's biggest cement company and 147 of its workers due to lose their jobs at a North-East plant.

Mr Blair took time out of a busy schedule yesterday for a meeting with union bosses at Lafarge Cement's Blue Circle works, at Eastgate, in Weardale, County Durham.

Union bosses emerged from the talks encouraged by his support for their fight to save the plant, which made a £11m profit last year and was the most productive in Lafarge's UK division.

Some of the Prime Minister's Sedgefield constituents work at Eastgate, and he has been kept informed since the company announced in January that it would close in July.

He met Weardale's MP, Hilary Armstrong, his Government chief whip, Durham County Council chief executive Kingsley Smith, GMB regional organiser Derek Cattell, and Eastgate shop steward Billy Wilthew.

French-owned Lafarge have angered workers by shunning talks with two possible buyers for the plant - Weardale businessman Angus Ward and an unknown European cement manufacturer said to be interested in buying it.

Ms Armstrong will press Lafarge to agree to talks and will also approach the Government's Competition Commission to ask whether or not the company, which has 50 per cent of the UK market, is breaching any rules.

She said: "Tony said we will do what we can to bring interested parties together to pursue all alternatives.

"I will go back to Lafarge and let them know the Prime Minister's concern, as well as my concern. A request is on the table with them that they meet up with this other company. I will keep on pursuing that.

"At the same time, the lads at the works are asking whether they can delay the closure. People don't want to leave the dale."

But Lafarge said last night: "Our position remains that the factory will not continue as a cement-making facility."