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.
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Mainly dry but rather cloudy to start this week. More unsettled by the end of the day Wednesday - stronger winds and showery rain
Many areas dry over the next few days with variable cloud and cooler airflow