UP to 60 jobs are set to be axed with the closure of an engineering works.

Sermatech Manufacturing today announced plans to merge its businesses at Colne and Dunnockshaw, near Burnley, next month.

The Sermatech-Mal Tool site at Cotton Tree Lane in Colne will close and the redundancies will affect both plants.

Around 45 will go from the shopfloor and a further 15 technical and management staff.

The job losses are the latest in a series of blows to East Lancashire's economy.

Last week announcements were made over the closure of the former Lucas Rists site in Accrington with the loss of 550 jobs, the relocation of Airtours holiday headquarters from Helmshore to Rochdale and the closure of a healthcare factory in Blackburn owned by SSL. Burnley MP Peter Pike is to raise the crisis facing East Lancashire industry later this week when he meets trade secretary Stephen Byers in his capacity as one of the Parliamentary Officers of the GMB union.

Rossendale and Darwen MP Janet Anderson, whose constituency will lose almost 1,000 jobs due to the Airtours decision, unsuccessfully lobbied the holiday giant to keep its HQ in the Valley. Sermatech-Mal Tool today asked for volunteers for redundancy from its two local sites and offered a tax free incentive of £2,000 to employees whose applications are accepted.

"Sermatech Manufacturing Group has reviewed all other options before making this decision and the focus must now be to support all affected employees and try and maintain a successful business for the future employment of those who remain," said a statement issued by the firm.

The firm said it would help affected employees find alternative work and had taken on a firm of employment consultants to work with staff.

A job search workshop is to be established and employees will receive individual help from Coutts Consulting.

A mail shot will be sent out to local companies this week to try and find new work.

A number of employee representatives will be appointed to consult with management over the job losses.