THE future of one of York's key employers is a cause for serious concern, the Evening Press can reveal today.

Council economic chief Tony Bennett said when approached by the Evening Press that the position of rail wagon manufacturer Trinity Rail Thrall Europa was looking "doubtful" if new orders did not come in.

The factory's remaining order - a five-year deal with rail operator EWS for 2,500 wagons - runs out in July.

A spokesman for EWS confirmed there were "no immediate plans to order any more wagons from Thrall".

Mr Bennett, City of York Council's assistant director for economic development, said: "It's very doubtful the factory will be able to stay open if no more orders come in. We need to find out exactly what the situation is.

"If there's a threat of closure we'll do everything we can to support the workforce."

Bosses at the factory, which employs about 260 people, declined to comment about their future.

But York MP Hugh Bayley confirmed he had spoken to them about their plight.

"Thrall badly need a new order," he said.

In a recent meeting at the Holgate factory, based on the former York carriageworks site, bosses told employees that the current order runs out in July.

An employee who attended the meeting but wished not to be named, claimed morale was "at an all-time low" and said they all "feared the worst".

He also said the factory's fabrication department - where wagon parts are made - was in the process of closing down and moving to the Czech Republic.

It is believed that parts will be sent back to the York factory from there for assembly in the future.

The employee said: "The reality is that if we don't get more orders we will close."

Thrall recently merged with an even mightier US-based rail wagon manufacturer, Trinity Industries' Railcar.

Mr Bayley said: "The Government is putting a lot of extra investment into rail freight but the operators are not ordering wagons."

Updated: 14:43 Wednesday, February 27, 2002