TWO thirds of the workforce at one of Burnley's most famous factories are to go, bosses have announced.

Burco Dean Appliances Ltd is closing its electric blanket manufacturing plant in Langham Street with the loss of 80 jobs. The company's wash and catering departments will continue to operate.

Shocked workers were given the news yesterday morning by chief executive Ron Colquitt. Competition from China, global warming and better central heating have all contributed to the market's decline.

Today, Burnley Council's Liberal Democrat group leader Coun Gordon Birtwistle said the job losses were a disaster'.

Mr Colquitt said: "It's been a situation for approximately five years and we've been able to continue because two of our UK competitors have gone out of business over the last five years so we've been able to keep volumes reasonably up.

"Now we've found we have competition from China and manufacturers are starting to infiltrate the UK markets. It's become particularly difficult in the last 18 months because China is cheaper."

Mr Colquitt said workers had been aware of the situation and the company had tried to compete by buying components from China for assembly in Burnley.

The company will now go into a consultation period for 30 days for discussions with workers and union representatives.

Mr Colquitt said: "We will do our best to get the local job centre involved and try to make it easier for people to talk to the job centre at work.

"Unfortunately because the washing and catering is a different type of skill as opposed to the electric blankets, we can't offer permanent position on site to the electric blanket operatives.

"We will do all we can with the help of outside agencies."

Burco is famous for production of the Baby Burco washboiler in the 1950s and the original company, WH Dean, was founded in 1895. The company expanded into electrical products following the Second World War after merging with Burnley Components.

A spokesman for the GMB union which represents workers at the company confirmed 80 jobs were set to go but said no discussions with the company had yet taken place.

Following the announcement, Coun Birtwistle said: "It's another nail in the coffin in manufacturing in Burnley.

"It's going on all the time and the economics of the country are not helping. Until the government get to grips with it and assists manufacturing it's going to carry on.

"It's another 80 high paid jobs that have gone and will be replaced with minimum wage jobs which will not make the economy of Burnley stronger. It's a disaster for the workers."

But the town's MP Kitty Ussher said although the job losses were disappointing, jobs were also being created in Burnley.

She said: "This is obviously disappointing news. I stand ready to help any individual affected to find work. If anybody would like to come and see me to discuss the options I will be happy to talk to them.

"Jobs are being created in Burnley as well as jobs going. We all need to make sure we're investing in skils and training to keep ahead of the competition."