Last year staff voted for job losses and a pay cut to save the plant

Administrators were called in to South Shields plant Circatex in March and 350 jobs cut leaving around 180 at the site which makes printed circuit boards.

On Saturday, it was announced the business and assets had been sold to the company's management team.

The administrators say the company has continued to operate over the last two months and is now trading profitably.

Ian Kings, from administrators Tenon Recovery, said: "The sale has preserved more than 180 jobs in the local area and has resulted in the retention of world class skills in the area of printed circuit board manufacturing in the UK."

When the administrators were called in, the company said a cash flow problem had been sparked by increasingly tough foreign competition.

I think it is wonderful news but it is sad for those people who were made redundant in March, it has come too late for them Gerry Hunter, Amicus

Last year, 37 jobs were lost at the plant after workers voted for a 10% pay cut and job losses in order the keep the plant open.

The new managing director Mark Beesley said: "Over the last few years the European electronics industry has changed beyond all recognition and with it our customers needs have changed permanently.

"We recognise this and Circatex has been transformed as a smaller, more agile business that retains all its core capability in advanced technology manufacturing."

The news was welcomed by Gerry Hunter, regional officer for the Amicus union in the north-east of England.

He said: "I think it is wonderful news but it is sad for those people who were made redundant in March, it has come too late for them."

The union is taking legal action on behalf of the workers who were made redundant, in the form of unfair dismissal and breach of contract claims and is working to secure payments for them.