THE jobs of more than 200 workers were hanging in the balance last night, after it was revealed a North-East aerospace firm was in the hands of receivers.

Aerospace Systems and Technologies, of Consett, (AS&T) has hit problems only a year after it announced a major expansion at the site.

The company appeared to be predicting a bright future late last year, when plans were unveiled for an £8m investment that would more than double its size.

But last night the firm, which aimed to establish itself as a centre of excellence for the design and manufacture of aircraft wing components, was facing a very uncertain future.

When The Northern Echo contacted AS&T, all calls were being dealt with by the receivers, Ernst and Young, which is believed to have been on site since late last week.

No one would comment on the situation, but an announcement regarding the future of AS&T is expected today.

Alex Watson, leader of Derwentside council, said: "This is really a massive blow to the economy of the whole area.

"We will be doing everything we can to assist in helping find a buyer. We hope that another company can step in and take the business over."

The firm's future appeared secure after it landed a number of major contracts for British Aerospace. It heralded a push for investment in new equipment.

The growth, which was to be phased in over the next two years, equated to a 60 per cent increase in size for the high-tech plant.

In July this year AS&T was part of the NDI Aerospace Group which showcased at the Farnborough international air show.

With the aerospace sector a growing market, and AS&T the only firm of its kind in the North-East, it is hoped a buyer will be found for the firm.

In another blow for the North-East, 75 jobs are to be lost at Thorn Lighting, in Spennymoor, County Durham.