BOSSES at a company which announced it will be pulling out of Hyndburn as soon as a council grant runs out' today defended their decision to quit the borough.

Leoni Wiring Systems, formerly Lucas Rists, originally intended to close its factory in Pickup Street, Accrington last year, axing 560 jobs just months after it had bought the plant.

It only agreed to stay in the borough, and keep on just a fraction of its workforce, after Hyndburn Council stumped up £140,000 to pay their rent at a new unit in the Altham Industrial Estate for 18 months.

The free lease and support towards their business rates runs out in May next year and last week the firm announced it would be closing for good.

Chris Watkin, marketing manager for Leoni Wiring Systems UK, based in Newcastle-under-Lyme, Staffordshire, said: "The final closure of the site is anticipated to be around the end of May 2002. Employee numbers will be reduced on a phased basis.

"The company is giving a minimum of 60 days notice to all employees.

"It is expected that the first group of employees will leave the company by February 1 2002.

"Recent economic pressures within the automotive industry are such that it is now not possible to sustain the site as a viable production unit.

"The company will now begin full consultation with the trade union on site and will provide a full package of support and assistance to help employees secure alternative employment in the local area."

The plant in Altham had been used as a quality control centre for wiring harnesses being made at new plants in Romania, a country where 50p an hour is the going rate for staff.

The production of the harnesses had switched from Accrington in November.

Some 54 people are employed at the Altham site.

The final staff will leave in May next year, ending the firm's 40-year association with Hyndburn.

Council leader Peter Britcliffe has condemned the closure of the plant, while councillors, including members of his own cabinet, have criticised the decision to hand over the £140,000 without demanding assurances from the firm that they would stay in Lancashire.