The 40,000ft2 Robertson Timber Engineering factory produced open and closed timber systems, along with timber floor and roof cassettes.

The company said it was “deeply disappointed” but that its strategic review had indicated that its timber frame production should be used to supply its own housebuilding business, Robertson Homes, rather than other developers and housebuilders.

Robertson Homes mainly works in Scotland and, as a result, it had decided to focus production on its Scottish factory, in Elgin.

The Seaham factory only re-opened in 2016, following a period of post-recession mothballing. Sixty-two jobs are at risk.