The company is responsible for the Sydney Harbour bridge

Darlington-based Cleveland Bridge says the decision follows increasing foreign competition.

The company, famed for building the Sydney Harbour and Tyne bridges, says it needs to shed 240 posts.

Cleveland Bridge, which won a contract to provide steel for the new Wembley stadium complex, said the job losses would take effect from October 2004.

In a statement, the company said it regretted any job losses, but had been forced to act in an effort to maintain its position in the face of increasingly challenging competition.

Major projects

A company spokesman said work for the new Wembley Stadium would go on, as would the erection of deck steelwork on the world's longest cable-stay bridge, the Rion Antirrion Bridge in Greece.

The firm's deputy managing director Brian Rogan said: "We are naturally disappointed at today's news.

"But despite recent success, the market for major projects has changed."

The redundancies will affect 75 white collar staff and 165 manual workers.

The Cleveland Bridge & Engineering Company was founded in 1877 in Darlington.

From small beginnings in fabrication the company grew rapidly in size and reputation to build bridges and structures all over the world.

In 1990, the company merged with renowned Teesside-based bridge builder Dorman Long.