Hundreds of clothing factory workers in County Durham have been told they are likely to lose their jobs.

The company which runs the Sara Lee Courtaulds factory at St Helen Auckland is planning to shift its work overseas, making 340 workers redundant.

The company makes Autograph branded goods for Marks and Spencer, but has told its workers the UK is no longer competitive for volume clothing orders.

The company says it will start consultations with employees and union officials to see if there are any alternatives to the closure of the factory.

Chuck Rogalski, human resources director for Sara Lee Courtaulds, praised the workforce, but said labour costs made the factory uncompetitive with overseas manufacturers.

'Bleak prospects'

He said: "The essential issue that we have is an issue that is facing the entire UK clothing industry.

"Many of the products that we produce cannot be profitably made in the UK given the very severe price pressures that we face.

"We have price deflation in the markets which has created the situation for us."

No-one has been given redundancy notice yet - but the GMB Union says prospects are extremely bleak.

Derek Cattell, of the GMB, said: "This is a disgraceful decision.

People here have given their working lives to Marks and Spencer Derek Cattell, GMB

"People here have given their working lives to Marks and Spencer.

"The factory has existed under one name or another for 40 to 50 years.

"There were great emotional scenes among the women here when the news was broke. People are absolutely gutted at the decision.

"We must campaign to get Marks and Spencer to reverse this decision which would have a disastrous effect on the local community."

A spokesperson for Marks and Spencer said: As a company, Sara Lee Courtaulds must make the commercial decisions it feels appropriate for the future of its business.

"Marks and Spencer is committed to strong, strategic relationships with our key suppliers in order to deliver to our customers good quality clothing at outstanding value and available where and when our customers want to buy."