A Black Country tool-making factory is to close, leaving the jobs of 20 workers at risk. Timken will close operations at its site in Key Industrial Park, Fernside Road, Willenhall.

It is blaming soaring costs and lack of demand.

Bosses say they hope to redeploy staff elsewhere within the firm.

The US-based company also has an aerospace factory in Upper Villiers Street, Wolverhampton.

Timken spokesman Lorrie Crum said it was not yet clear how many employees would be kept on.

“Timken will close this small machine-tool operation due to the fact that demand cannot sustain the minimal volumes necessary to compensate for its cost of capital and continued operation,” he said.

“The machine-tool market is down more than 70 per cent worldwide.

“This factory in Willenhall was set up as a small satellite operation in 1999.

“It made super-precision bearings for manufacturers of industrial machinery but work done there will be absorbed by our Shiloh plant, in North Carolina, USA.”

It is the latest blow to industry in Willenhall. This month, 30 workers were made redundant when production stopped at George Carter (Pressings) Ltd.