STOUPORT'S economy has been dealt a blow after it was announced a long established factory in the town will close its doors for good next month.

The majority of the remaining workforce at Collins and Aikman Automotive UK Ltd will work their last day at the Bewdley Road plant next week, finishing on Friday, July 21.

A total of 27 employees were made redundant on June 30 when manufacturing ceased.

A further 20 will go next week, with a handful of staff remaining to assist with the "winding down" of operations until the end of August.

The American-owned company, which made and supplied car parts, was placed in the hands of administrators in July last year after suffering "significant financial losses".

Competitive market conditions, increases in raw material costs and price reduction pressures have been blamed for the demise of the factory, which employed more than 500 people in the town during its heyday.

Roger Shutt, regional spokesman for the Transport and General Workers Union, said employees were unhappy about the consultation time between the administrators and workers before the announcement.

He explained: "The closure has been on the cards for some time, especially with the demise of the motor industry in the Midlands. The news still came as a shock to the people losing their jobs.

"At the time of the announcement a lot of the workers were very upset and I should imagine some still are. The 25 people who left on June 30 were told within a matter of days.

"There is always a possibility someone might come in at the last minute but I think that is a forlorn hope," Mr Shutt added.

Union bosses slammed the company's management last year when 50 people found out they had lost their jobs through the post while on their two-week summer holiday.

Alastair Beveridge, spokesman for the administrators, Kroll, said: "It is regrettable that a phased closure for the Stourport plant became unavoidable. In the absence of potential buyers and continuing financial losses, we were left with no option but to close the plant.

"We would like to thank the employees and the trade unions for their support and assistance during the administration."

The closure is more bad news for employment in the town after management at Parsons Chain announced in April it would be shutting its Worcester Road factory later this year with a total loss of 90 jobs.