The company came to Teesside in 1994

It is thought the Korean company will be switching production from its Wynyard plant, near Billingham, to Spain and Eastern Europe.

More than 400 workers at the Teesside factory would be affected.

BBC North East Business Correspondent Ian Reeve said the company is ready to make the closure announcement to its workforce on Thursday.

He said the company is expected to say it can make the products that are assembled at Wynyard cheaper elsewhere. It is thought it may also blame a high turnover of staff.

No-one from the company was available to comment on Wednesday.

Gerry Hunter, from the Amicus union said: "We have found that over the years Samsung have avoided any representation levels and to hear the possibility of the closure, it is appalling because they will need professional people to represent them in their hour of need."

Call for talks

The company came to Teesside in 1994 after it was given grants and loans of �58m.

David Walsh was partly responsible for bringing Samsung to Teesside in his role at the former Cleveland County Council.

He said: "Obviously it could be a very large blow for the economy of the Tees Valley.

If this happens then we have all got to rally round very quickly Peter Mandelson MP for Hartlepool

"Having said that I would hope the door is not finally closed.

"I would have thought it is important now that those regional, national and local agencies should be sitting down with the Samsung management to see whether, even at the eleventh hour, we can find a way in which this plant can be kept open."

Hartlepool MP Peter Mandelson said he had spoken to senior management at the company on Wednesday but they had not confirmed to him what their announcement would be.

He said: "If it happens, it is happening, I believe, because of a worldwide fall in prices and a desire by Samsung to relocate production where they can do so more cheaply.

"I don't think it's a reflection on the quality of the workforce, their performance, the quality of investment, the infrastructure or facilities at Wynyard.

"Secondly, if this happens then we have all got to rally round very quickly and work very intensively to create an opportunity from this setback."