CONSULTATION between management and workers at Finnish plastics component firm Perlos has led to fewer redundancies than originally anticipated.

The Rainton Bridge, Sunderland-based business yesterday confirmed that it was making 87 of its 320-strong workforce redundant.

The announcement follows a consultation process with the employer's internal works council, which has managed to rescue ten of the original 97 redundancies planned.

The jobs will go at the firm's moulding division at Rainton Bridge South, with the adjacent tooling division being unaffected.

The job losses have arisen following a drop in orders from the recession-hit telecommunications sector for which Perlos Limited makes mobile phone casings.

Other external market forces include a slowing down of manufacturing markets globally and the strong sterling exchange rate.

The firm, part of the worldwide Perlos Group headquartered in Finland, is offering statutory redundancy pay to those affected as well as assistance in gaining alternative employment.

Perlos managing director Teemu Saloranta said: "By looking at the required manning levels with the works council we have managed to save ten jobs that we had anticipated might go.

"Our team throughout the organisation is very experienced and skilled.

"We believe in our people and are very sad to let these go as they are all good, loyal and professional employees.

"We wish them all the best and will not hesitate in offering them employment in the future if the opportunity arises."

Speaking of the future of Perlos in the region, Mr Saloranta stressed that the firm had a highly trained workforce, two state-of-the-art plants and sophisticated machinery.

He said: "Our moulding machines represent the latest technology that is fast, accurate and energy efficient. Production is highly automated with robotic handling of component assembly."

The company is currently investing £600,000 and installing a new production line to help it diversify into other sectors of the market from 2002.

Mr Saloranta added: "In addition we have a very efficient and modern tooling facility that can make world class tools in very short times.

"Here, order books are healthy into the second quarter of next year, assisted by a constant flow of orders from Perlos Group in Finland.

"We believe in our future as a successful company, being part of a world beating group, and we remain committed to Sunderland and the North- East as our UK base."