A Wolverhampton firm which has been in the city for almost 145 years is to close next month, leaving about 50 people out of a job.

DA Stuart, based in Lincoln Street, Springfield, has become the latest victim of the economic downturn.

The company, which makes lubricants and oils for metal works and the automotive industry, opened in 1865. It was sold to Houghton Plc last year.

Bosses said today the Wolverhampton plant was being forced to close due to a lack of business, with production shifted to a manufacturing site in Manchester.

An unconfirmed number of workers have already been made redundant.

Houghton spokesman Steve Mayo said: “A lot of our business is in the automotive sector, and the capacity of the business has been affected. The only way we can secure the other jobs is to consolidate the business in the current economic climate. We don’t have the sufficient capacity of business left to run both plants.

“The Wolverhampton plant was not big enough to take the extra volume of work which is why the production is being moved.

“Some of the workers were given the chance to relocate to Manchester, although not everybody has taken up that offer.”