Dumper truck firm axes 170 jobs

US construction equipment maker Caterpillar is cutting 170 jobs at its County Durham factory, blaming the world economic slowdown.

The temporary workers, employed by Parkhouse recruitment agency, have been released from positions at the firm's base in Peterlee.

Managing director Eric Lepine said the current economic climate had led to a significant reduction in market demand.

The factory, which makes dump trucks, employs more than 1,000 people.

Mr Lepine said: "This is a very painful and regrettable decision that will affect 170 families and we have really tried everything we could to avoid making it.

"We regrettably had to make this decision in order to secure our long-term future and to try to maintain remaining employment on site".