Once again we see a British company unable to compete with foreign competitors

John Edmonds GMB Union

And 400 temporary staff contracts will not be renewed.

The company, which makes professional and consumer power tools at the plant, blames the cuts on low cost imports from the Far East.

It will move some production to a new factory in the Czech Republic where wage costs are lower.

Two years ago, Black & Decker employed more than 2,300 people at its plant in Spennymoor - making drills, strimmers and other power tools.

After this latest round of job cuts there will be only 450 staff left.

'Great blow' for North East

The company is expected to complete the transfer of its work from the UK to a plant at Usti in the Czech Republic by the end of next year.

John Edmonds, general secretary of the GMB union said the announcement was "devastating" for the workers and for UK manufacturing.

"Once again we see a British company unable to compete with foreign competitors because they are effectively attempting to do so with one hand tied behind their backs," he said.

"It is another example of why there needs to be an early campaign over the single currency."

Jonathan Blackie, regional director of Government Office North-East, said: "The announcement of these job losses at Black & Decker is a great blow for the North East as the Spennymoor plant is one of the region's biggest manufacturing sites."

Black & Decker also has a factory at Maltby in Yorkshire and a head office in Slough, Berkshire, but these will not be affected.