MANAGEMENT at an award-winning North-East factory last night reacted quickly to quash fears among staff concerned at proposed changes in production.

Rumours engulfed the workforce at Black & Decker that part of its production was being switched to the firm's site in China, in response to problems in the European market.

But although managers at the Spennymoor site confirmed plans for a "significant change in the product mix" they said it spelled good news for the workforce.

A spokesman for the company said: "Spennymoor has already proved itself as a site of manufacturing excellence.

"In 1998, Black & Decker transferred manufacture of the DEWALT range from its site in Italy to Spennymoor.

"This entailed an investment of some £18m and brought in the creation of 350 new jobs.

"Manufacture of some low cost consumer products - including drills, jigsaws and Fintailer sanders - will be transferred to the plant in Suzhou, China.

"As these low cost items are transferred out of Spennymoor, they will be replaced by higher-specification tools."

Although the company said it was too early to say whether the new production would lead to more jobs at the site, the spokesman confirmed the news was a boost.

The firm currently employs 1,100 full-time staff together with a number of temporary workers on a "supply and demand" basis.

The change will occur between now and the spring of 2001, and the decision was described as making "sound economic sense".

The initiative represents a strategic manufacturing re-alignment which reflects changes in European market conditions, with the company's response designed to accrue maximum commercial advantage from the situation.

The spokesman added: "The planned shift in production reflects that Spennymoor is considered the site best placed to further develop these profitable lines."

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