A union today feared "devastating" job losses if a takeover bid goes ahead between two engineering firms which employ about 500 people between them.

The American parent company of Anderton International in Bingley is understood to be in takeover talks with family-run factory Ellisons, which employs 250 people, at its factory in Glusburn.

Both companies produce circlips, lock washers and snap rings for the engineering industry.

Bosses of both say nothing has yet been agreed and talks are continuing.

Today, Allen Higginson, Yorkshire regional officer of the Manufacturing Science and Finance union, which has members at Anderton, said: "We know they are taking over Ellisons and logic tells me they will be closing Bingley because if they want to expand they have got the room at Glusburn."

He added: "If this buy-out goes ahead they will have about 60 per cent of the UK circlip market which could possibly be referred to the new version of the Monopolies and Mergers Commission. The effect of what happens will be devastating for the local economy.

"Irrespective of what happens there are going to be job losses. It won't necessarily mean they will all be at Anderton's but there will be a significant number because of duplication."

Michael Ellison, chairman of Ellison Holdings plc confirmed his company was in talks with the Trans Technology Corporation, the American parent company of Anderton International.

But he refused to give details about the content of the talks.

Anderton's managing director Daran Brown said: "We have been in discussions with Ellisons, talking to them about synergies between the businesses. We could work together in the future.

"I don't want people upset by rumours and I can assure them that as soon as anything has been agreed we will be talking to our employees, to the Press and to the local communities.

"I certainly don't want to drag out this interim period any longer than is necessary.

"I know there are a lot of concerned people and as soon as something is agreed we will come clean straight away."

Ellison Holdings, which was established in 1953, made 19 workers redundant in October last year, blaming the economy.

Anderton International has a similar-sized workforce at its base in the Britannia Works, Ferncliffe Road. It started as a spring factory in Oakworth in 1939 and went on to become the biggest manufacturer of circlips and retaining rings in the UK.

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