THE first Japanese company to establish a manufacturing base in the North-East yesterday moved to quash rumours that it is planning to move production away from the region.

Speculation has been mounting that NSK Bearings, which employs 440 people at its flagship Peterlee base, in County Durham, was planning to transfer its entire operation to its sister plant in Poland.

In 2003, the firm moved part of its production to the Polish plant, with the loss of 95 jobs from its 600-strong workforce in the North-East. The job cuts were the first NSK had made in its 28-year history.

Two years later, a further 85 jobs were shed from the plant, on the town's South-West Industrial Estate, despite £16m being invested in the future development of the site.

But yesterday, a spokesman for the company told The Northern Echo that NSK had "absolutely no intentions" of transferring its existing manufacturing side to the Eastern bloc.

The company, which has had a major presence in the North-East for more than 30 years, makes bearings - mainly for the automotive industry.

Rumours have circulated about the company's intentions in the North-East for several years.

Last year, to mark the company celebrating its 30th year in the region, a Japanese delegation visited the region and pledged their continued commitment to the North-East.

But the earlier job losses and the Polish connection had left an uneasy feeling and worries continued to grow that further plans were being made to transfer more manufacturing jobs.

Yesterday, an NSK spokesman moved to allay fears by ruling out any plans to move the making of the automotive parts elsewhere, saying that it was the company's "firm intention" to remain and retain its sophisticated and competitive manufacturing base exactly where it is.

"Peterlee has become our flagship and we certainly have no plans to either wind down or leave the area," he said.

"We were the first of the Japanese investors to set up camp here and others followed in our wake.

"We have made a huge investment in Peterlee, both in money terms and skills training, and we remain highly confident in the excellent workforce."

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