More than 100 jobs are going at SABIC Petrochemicals on Teesside.
The company has seven hundred employees across its operations.
The announcement comes a day after the latest figures show that unemployment is up by 12,000 in the North East.
You can watch the full report from Claire Montgomery below.
More top news
Stephen Unwin and William McFall were handed whole life sentences for the brutal murder of 28-year-old Quyen Ngoc Nguyen last August.
Part of the eastbound carriageway in Middlesbrough was closed for several hours and will be reduced to one lane in the coming days.
Three horses have died in separate incidents at Hexham racecourse. The British Horseracing Authority has said it is investigating.