THREATENED York rail manufacturer Thrall Europa has been given grounds for "cautious optimism" by rail freight company EWS.

The rail firm, whose current five-year deal with the Holgate-based factory for 2,500 wagons runs out in July, said it would "not rule out" further orders in the future.

Transport Secretary Stephen Byers, speaking at a coal conference near Selby yesterday, also pledged that he would "do what he could" to help Thrall.

The Evening Press revealed this month that the Holgate-based factory's future was in "serious doubt" unless new orders came in.

A spokesman for EWS told the Evening Press: "We've been in commercial negotiations with Thrall relating to our current deal.

"Beyond that, we would look to the marketplace of which Thrall is a potential customer depending on whether they can make what we want.

"We wouldn't rule them out and we wouldn't rule them in."

The spokesman denied rumours allegedly sweeping through the plant, that it had signed a new order for 750 wagons with the threatened firm. "It's the first we've heard," he said.

The spokesman also revealed an EWS board delegation had visited the Holgate Road site last week.

"What was discussed I've no idea," he said.

Roy Templeman, City of York Council's director of environment and development services, said he had recently spoken to both Thrall and EWS.

"Everybody is optimistic that there will be new orders for Thrall in the future," he said. "But nothing has been confirmed and there has been no suggestion to me that further orders are likely. A Thrall source, who would not be named, said there was "cautious optimism" among the 265-strong workforce.

Updated: 11:24 Tuesday, March 19, 2002