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
Kerrie Gosney brings you Sunday night's forecast
Cold with wintry showers overnight and on Monday.
Cold air from Canada will turn showers wintry overnight into Monday morning. Snow could settle over higher routes. Icy patches possible