POTENTIAL buyers of the beleaguered United Engineering Forgings plant in Bromsgove, which is in danger of closing with the loss of 500 jobs, may be offered a financial carrot to buy the firm, it emerged late yesterday.

And if a buyer for the once world-renowned castings firm, formerly Garringtons, cannot be found, the land will not be released for housing development, but retained for industrial use.

The news followed crisis talks between Bromsgrove District Council and national and local union representatives, who were there on behalf of the giant Amalgamated Electrical Engineering Union (AEEU).

Duncan Simpson, AEEU national officer, who called the meeting in an attempt to find a way forward and find a buyer for the site as a going concern,said the council will look favourably at reducing business rate providing it genuinely helps keep jobs.

UEF was put on the market by administrators KPMG, which were brought in to try to save it when it crashed earlier this year in the summer.

So far a buyer has not been found which led KPMG to warn last week the factory could close "within weeks."

Describing the talks as "positive," Mr Simpson said both he and the council deplored the fact that KPMG has recently written to customers advising its prices will rise by between 150 and 200 per cent.

It was a move, he said that would frighten off potential buyers.

Council leader Cllr Nick Psirides (Con, Norton) said: "The meeting was constructive and a way forward has been found and many misunderstandings cleared up.

"We also plan to meet local union representatives on a regular basis," he added.

KPMG could not be contacted for a comment as the Advertiser/Messenger went to press.

Earlier a spokesman for the administrators declined to comment on rumours circulating in the factory that a buyer was being lined up or that a decision on the firm's long term future will be made within a week.