A BLACKBURN company has shed 16 jobs after losing out on a contract to install safety doors in hundreds of local homes.

Rockdoor was in the running for the three-year council contract under the Elevate scheme, which aims to regenerate housing across East Lancashire, but it has now gone to a firm outside the area.

One of Elevate's objectives is to encourage building contractors to use local firms and Rockdoor said it thought it stood an excellent chance of securing the work.

But today Elevate chiefs defended their decision to allow the contract to go outside of East Lancashire, saying the un-named company to which it was awarded offered the best value for money.

Mark Simm, sales director at Shadsworth-based Rockdoor, said: "The tender was for a significant three year regeneration initiative in East Lancashire for the Elevate consortium.

"We believed we stood an excellent chance, but unfortunately the contract went to a company outside the area."

Tom Dobrashian, Elevate's commercial director, said: "We encourage local companies to seize the opportunity to be involved in regenerating East Lancashire.

"We advertise and run open days, workshops and training, to guide local firms through the rigorous public procurement process.

"However, we are not allowed to favour locals over other companies when it comes to selection, as this would be in breach of legislation."

Elevate said more than 30 companies applied for the contract to supply safety doors in Blackburn, and although Rockdoor made it to the shortlist of six, it was not successful.

Mr Dobrashian said Elevate has offered additional support to Rockdoor to help it compete for future contracts.

Rockdoor, which employs 61 people, is a sister company to GAP (General All-Purpose Plastics), the fast-growing plastic building products firm.

Together the two companies employ 269 people on Shadsworth Business Park.

Rockdoor has invested £2million in the facilities at Shadsworth in the past two years and despite the redundancies Mr Simm said he is confident about the firm's future.

"Rockdoor's significant investment in state-of-the-art manufacturing machinery gives us the capacity to grow.

"But while this protects our long term future it does not protect us from current market conditions and it is regrettable that despite our best efforts we have had to take this action."