A METAL fabrication company is shedding up to a third of its workforce after a downturn in the industry and pressure from the Far East.

The Eliza Tinsley Group, which employs 240 people in Evenwood, near Bishop Auckland, County Durham, is making up to 85 people redundant.

The former Evenwood Engineering factory was taken over by the Tinsley Group in 1996, and many employees have spent their whole working lives at the plant, which is more than 50 years old.

Tinsley is believed to have recently lost a contract with Komatsu, in Birtley, near Chester-le-Street, because of overseas competition.

The redundancies are a blow for the communities of Evenwood and West Auckland, which rely on a handful of companies for employment.

Stewart Maudsley, divisional managing director, said: "We have competitive pressures from Asia and that, combined with a general downturn, means that we need to take some decisive action to secure the long-term future for the business.

"We did take some steps to restructure management earlier in the year.

"We are making every effort to secure future orders and, if things change, we will be able to reduce the numbers being made redundant.

"We have lost some contracts to the Far East, but we are fighting hard to try to find new work."

Stephen Thompkins, regional organiser for the GMB union, said: "The redundancies are due to a downturn in work and in the industry generally.

"They have lost some orders and have tried to hold this back as long as possible, but reductions still have to be made."

"It is never a good time for redundancies, but it is a horrible time just before Christmas.

"In this rural area, it is particularly devastating. Everyone in Evenwood and West Auckland will know of someone who works at the factory.

"It will have a major effect on the area."

One worker, who did not wish to be named, said: "The atmosphere at the moment is like a wake. Everyone is waiting for the end. We don't know who will be going yet and no-one is motivated. Nobody can make any plans for Christmas."

Mr Thompkins said many workers had been at the plant all their working life.

"A lot of individuals don't even have a car because they can walk to work," he said.

"I am hoping there are jobs out there for them."