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
Our cool but calm weather is set to continue. But for how long?
The team have responded to three incidents in the last fortnight alone.
The officer was blasted twice by gunman Raoul Moat who had declared war on police minutes before.