Birtley-based AEI Cables has announced it is unable to continue manufacturing and will continue as a sales-only business.
The company, which has been making cables for 170 years, said it will be serving a notice of redundancy on a number of employees and is proposing to enter a Company Voluntary Arrangement (CVA).
AEI Cables, had been losing money for some time and it became necessary for the manufacturer to either find a buyer or cease production.
The majority of the 198 employees will leave on or before Friday, January 6.
As part of a phased closure, approximately 40 employees will continue working until the beginning of March.
Thirteen sales and administration staff will stay on working for the company after September at a location to be decided.
In the CVA, employees can claim statutory redundancy pay from the Government’s Redundancy Payments Office, while the company can pay creditors over a fixed period in accordance with the terms of the CVA. If creditors agree the CVA, the company can continue trading in the meantime.