Birtley-based AEI Cables announced on Tuesday that it is unable to continue manufacturing and will continue as a sales-only business.
The company, which has been making cables for 170 years, said it will be serving a notice of redundancy on a number of employees.
The majority of the 198 employees will leave on or before Friday 6th January.
Responding to the potential closure, Martin Gannon, the Leader of Gateshead Council, said:
North East cable manufacturer AEI Cables based in Birtley has announced they are discussing possible job losses.
Bosses have met with GMB union representatives and all employees to inform them that the company is entering into a period of consultation on possible redundancies.
The company employs 240 people.
Formal consultation is going to start next Wednesday (September 14) for a minimum of 45 days.
In the meantime, AEI Cables is reassuring its customers that business will continue as normal and that all orders will be fulfilled for now and the foreseeable future.
British Transport Police can now confirm that just after 7am this morning, a 15-year-old boy, Kieran Ash from Chester-le-Street, died after being struck by a train in the vicinity of Birtley Junction, Newcastle Upon Tyne.
There are no suspicious circumstances surrounding his death and a file will be prepared for the local coroner.
Kieran’s family has asked that they are now given time to come to terms with their loss.
Two men have been arrested after a stolen car crashed into a house near to the A1 in Birtley.
Northumbria Police were following the Renault Megane when it collided with the home on Long Bank just before midnight on Tuesday 28th July.
The crash only caused minor damage to the home and nobody inside was hurt.
Long serving Birtley councillor Neil Weatherley has been elected Mayor of Gateshead. Councillor Weatherley was formally inaugurated as Mayor at Gateshead’s annual council meeting. He said he felt 'tremendously honoured'.
Extensive damage has been caused to a house after an unattended van rolled into it in Birtley. The Ford Transit delivery van crashed into the house in Kirkstone at 4am on November 21. Nobody was injured.
A large number of potentially dangerous fireworks have been stolen from a van in the north bound car park at Birtley Services.
The fireworks were going to be used at a display tonight.
The stolen fireworks are known as "onion bombs" because of their long fuse. Police and pyrotechnic experts say they are deceptive as, once lit, they could explode in seconds.
They were stolen sometime between 7.30pm on Thursday October 31 and 7.30am November 1.
A date has been set for the inquest into the death of a man who was killed by gunman Raoul Moat.
Chris Brown, 29, was shot and killed in Gateshead after starting a relationship with Moat's ex-girlfriend, Samantha Stobbart, two days after he was released from jail in July 2010.
A two-week inquest will be held into the circumstances of Chris Brown's murder in Birtley, with the hearing starting at Newcastle Crown Court on 2nd December.
It has emerged that staff working for Co-Op Funeral care at Birtley in Gateshead mixed up bodies, and took the wrong one to a cremation service.
The mistake wasn't picked up until it was too late, and one family subsequently had to have a funeral without the body of their relative.
Two people have since been dismissed and a full investigation into the incident, which happened last month, is now underway.
Watch the full report from Kenny Toal below.
Two funeral workers have been sacked from Co-operative Funeral care for cremating the wrong body.
The mix-up saw staff place the wrong body in a coffin and send it to Birtley Crematorium in Gateshead, Tyne and Wear.
Grieving friends and family, who thought they were saying their final goodbyes to someone they loved, were actually saying farewell to a complete stranger.
Co-operative Funeralcare have apologised to the family, and sacked the two workers involved. A spokesman said: