The plants produce circuit boards

The DTI has been informed about the job losses, which will affect up to 525 workers at Longbenton and 325 on South Tyneside.

The two sites currently employ more than 1,600 people.

Sir Ken Jackson, General Secretary of the AEEU union, described the news as a "huge blow" to the region.

He said: "These are more quality jobs slashed in the technical sector, which demonstrates just how difficult it is for manufacturers to survive.

"This is a good company with a worldwide reputation.

"If they cannot make a go of it thousands of others will not either.

'Terrible problems'

"This part of manufacturing is suffering terrible problems at the moment," he added.

Viasystems transferred ownership of the Tyneside plants to EPCBG in March 2000, licensing the sites to continue to trade as Viasystems.

Prior to Viasystems' ownership, the sites were owned by ISL and Plessey Circuits Limited.

In 1998 Viasystems was criticised for shedding 1,000 jobs at its Scottish factories, and attracting �24m of government aid for its operation in the north-east of England.

The company once told its workers "the future's so bright, you'll have to wear sunglasses".