BRICK maker Dyson Refractories is poised to close its factory in the region after becoming the latest company to fall victim to overseas competition and rising energy prices.

The managing director of Dyson, in West Hunwick, near Willington, County Durham, confirmed last night that the site was likely to close in the New Year, with the loss of more than 50 jobs.

John Casewell said competition from China, a lack of orders and the soaring price of gas had put huge pressures on the company.

"The problem is a lack of volume in terms of customer orders. It has been slowing down," he said.

"Steel is our biggest business and they are taking more and more exotic types of materials, which they are buying from places like China. China may not be able to compete with the cheaper stuff, but they can with more exotic materials."

Dyson began a 30-day consultation period earlier this month and is expected to make a decision about the factory's future next month.

Mr Casewell said: "We still have orders to complete and so the factory will not be shutting before Christmas. If it is going to go, it will be in the New Year."

The Amicus union, which represents the majority of the workforce at Dyson, was unavailable for comment yesterday.

When news of possible redundancies broke earlier this month, Amicus spokesman Gerry Hunter said the closure of the factory would be a sad loss for the local community.

"I am afraid that the workers will struggle to find new jobs in the refractory business, so will need a change of employment," he said at the time.

Dyson Refractories in the largest independent refractory brick manufacturer in the UK, with another site in Sheffield.

An independent sub-unit at the West Hunwick plant, which produces nozzles, is not affected.

Dyson, which supplies heat-resistant bricks, particularly the energy industry, is only one of a number of manufacturers in the region struggling to survive in difficult market conditions.

Last week, SCA Packaging announced that intense competition had forced the closure of one of its Darlington plants, with the loss of 175 jobs, and Elementis Chromium, in Eaglescliffe, near Yarm, last month announced 120 job cuts, blaming rising raw material and energy prices.

The Tinsley Group's Evenwood plant, in Bishop Aukland, County Durham, announced up to 85 redundancies last week, blaming overseas competition.