SHOCKED staff at ball bearings giant FPT in Blackburn have been told their factory is set to close after a buy-out by the West Midlands-based Wyko group.

The company, formerly Fenner Power Transmission, based on Philips Road at the Whitebirk Industrial Estate, is set to shut its base in Blackburn and move the business to Wyko's headquarters in Halesowen.

Staff, who had not been expecting an announcement, were called to a special meeting to be told the news.

The merger means the companies will form an industrial distribution company with a turnover of £250 million.

The well-known Fenner brand will stay and management claim the majority of staff will be unaffected by the developments.

But there will be redundancies at the Blackburn base later on this year, as it closes out after more than three decades. It is not known how many people will be affected but one worker told the Lancashire Evening Telegraph 150 jobs are to go.

Management has promised it will make an effort to find staff alternative work within the group and has also pledged to help staff find work elsewhere.

A spokesman for FPT said: "The merger of these two companies will create a much stronger industrial distribution company with a combined turnover of £250 million. Due to the current adverse market conditions in the UK industrial market, it will not be viable to maintain both central warehousing and administrative activities.

"This means that there will be a number of redundancies at FPT's Blackburn site later in 2002 and that the site will be vacated by the company."

One worker, who did not wished to be named, said the company had treated its staff "appallingly."

He said: "We were taken in on Thursday and told the place was shutting down. It was a shock announcement and everybody has been left very, very bitter. People have worked her for years, families rely on this work."

Tom Fallows, branch secretary for the General Municipal Boilers Union (GMB), said he was due to meet company representatives tomorrow.

He said: "FPT is a well-established company and this is obviously a shock which people will still be reeling from.

"I have contacted the union organiser for the company and will meet with him tomorrow to see if jobs can be transferred to the parent company. If not we will be looking to make sure the workers get the best terms."

FPT was set up after a management buy in team bought the former power transmission division of Fenner plc in April.

The firm has 78 branches in the UK and a further 23 in Europe and distributes parts for machinery including conveyor belt systems.

It bought Kingswood Fluid Power which specialises in the distribution of hydraulic components through nine branches in the UK in 1999.

Following the deal most of Kingswood's distribution activity and all its branch employees were transferred to FPT.