THERE was mixed news on the jobs front in the North-East yesterday.

School blazer manufacturer Beau Brummel, in Seaham, County Durham, announced plans to axe 35 jobs, more than a third of its workforce, but electronics firm Europa Magnetics Corporation (EMC), announced plans to invest £20m in a factory in Cramlington, Northumberland, creating 200 jobs.

Beau Brummel announced plans to scale down its operation, cutting its 98-strong workforce, to create a more flexible quick-response unit.

A company spokesman said: "We believe these actions will assist in our efforts to strengthen our position in a very competitive market and provide opportunities to increase our share of this market.

"This has become necessary as the result of increasing employment costs in the UK and customer resistance to price increases. Corrective action must be taken now to safeguard the future of our manufacturing operations in Seaham."

EMC plans to install technology not yet available in the UK in its new facility in Cramlington. It has a £1.3m Regional Selective Assistance grant from the Department of Trade and Industry and support from Northumberland County Council.

EMC is the largest manufacturer of floppy discs in Europe, and one of the largest manufacturers of CD-Rom discs in the UK. It employs 366 people at Cramlington.

General manager Doug Urwin said: "We are determined to build and develop our existing market position in Europe for media products. The substantial new investment in Cramlington is a reflection of our future plans for the business and will further strengthen our UK presence."

Mel Barras, regional officer for the Amalgamated Electrical and Engineering Union, said: "I am delighted that EMC has decided to invest in the region and create 200 new jobs in an area that over the last few months has seen a number of redundancies and closures."