The Blue Circle Cement works in Weardale, County Durham, is to close with the loss of 147 jobs.

Bosses said the Weardale Works at Eastgate will end cement clinker production at the factory in July.

Operations at the site will then reduce as remaining cement supplies are delivered to customers.

The decision follows the completion of a major, four-year investment programme that has increased capacity and efficiency at Blue Circle cement works in the Midlands and Scotland.

Blue Circle Cement UK managing director, Richard Olsen, said: "The future of Weardale has been the subject of continuous review in recent years.

"The closure decision has been reached following an extensive review of our capacity and future market requirements.

"This is the best long-term option for our business as we have surplus production capacity, following the successful completion of the investment programmes at our factories at Cauldon, Dunbar and Hope. We have also taken a strategic decision to minimise exports.

"This decision is no reflection on the performance of the Weardale team."

He added that staff at the works, which also employs a large number of local contractors, had done an exceptional job.

"However it is now more cost effective for us to supply customers in Weardale's market from other sources," he added.

The works closure team will be working to ensure that customers have a seamless transfer to cement deliveries from two new depots, which will be built at Seaham, County Durham, and Carlisle. The depots will be supplied from Blue Circle factories at Hope in Derbyshire and Dunbar, East Lothian.

"We will be making every effort to help our employees and the local community through this difficult time," said Richard Olsen.

"It is our intention to do this working in our established partnership with the trade unions, together with the regional development agency, One North East and other local partners to find the best long-term options for our employees.

"Our employee programme will include an active 'job shop' and professional assistance in job seeking. We will do all we can to find continued employment within the Lafarge Group for those prepared to relocate and who have the suitable skills and experience."