YORK MP Hugh Bayley has confirmed that rail giant Jarvis is interested in taking over Thrall's factory site.
He also revealed another rail company was in the running to take over the plant in Holgate Road.
A source told the Evening Press that earlier this week, four or five people from Jarvis had visited Thrall which is closing down early in the New Year.
Mr Bayley said: "After all the efforts to get Thrall to come to York it was a terrible blow to discover they were pulling out.
"City of York Council and I have been looking at alternative uses for the works. I can confirm Jarvis is looking seriously at the site and I know of another rail company which is also interested.
"I will do everything I can to keep a railway use on the site. Jarvis is a growing railway company which already has a strong commitment to York.
"The top priority right now is to help Thrall workers to find new jobs."
A Jarvis spokesman has confirmed it is seeking to relocate from its current site in Leeman Road. A Thrall source told the Evening Press employees had been given a letter confirming that production would cease in December. It is also believed that about 50 workers will be kept on until February to clean up the site and strip it down.
Mr Bayley is visiting the site on Friday to meet Thrall bosses and Future Prospects staff, who are trying to help the workforce to find alternative work.
Updated: 11:54 Monday, October 28, 2002
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