TALKS to save a famous North-East crisp factory have failed, say unions, who warned the potential loss of 104 jobs would be a "devastating blow" for workers and their families. 

Last month, KP Snacks started consultation over plans to close its factory in Consett, County Durham, and cut costs by expanding production at a sister site in Billingham, near Stockton.

The union previously vowed to push management for talks to keep the posts in the North-East, by transferring staff to Billingham or another base in Tanfield, near Stanley.

This morning, the GMB Union said that KP have now confirmed the Phileas Fogg factory will close in 2015.

The union said it was exceptionally disappointed after a counter proposal was rejected by KP's board of directors. The Northern Echo understands this included switching production of the firm's tortilla range from its plant in Ireland to Consett rather than to Billingham as is being planned, or to merge the Tanfield and Consett sites.  

GMB Organiser Suzanne Reid added: "This is a devastating blow for our members, their families, and the community of Consett. The workforce are a dedicated, skilled and passionate.

"The people of Consett have been so loyal to Phileas Fogg, some have worked here for 25 years and they are now thinking - 'what am I going to do?"

Dialogue continues regarding possible redeployment opportunities at the Billingham and Tanfield sites. 

Pat Glass, North West Durham MP said: "The company says they are continuing consultation but it looks certain now that the factory will close. It is a tragedy for Consett that follows last week's announcement of 150 jobs going at Hassockfield (Secure Training Centre) in Medomsley."

Mrs Glass said she would be pressing KP to ensure that as many workers as possible are transferred to the firm's other regional sites and given help with travel costs, retraining and severance packages.   

The Consett plant, based on Medomsley Road, makes Phileas Fogg crisps, which in the 1990s gave the County Durham town national exposure through a television advertising campaign about the fictional Punjab Airways.