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
A couple in North Tyneside have seen off an intruder believed to be armed with a machete.
Brighter skies follow morning rain for both Saturday and Sunday. Winds stay strong. Mild Saturday, cooler on Sunday
Hartlepool United's great escape bid continues in League Two this afternoon - they welcome Cambridge to Victoria Park.