A world-leading engineering company based at Crossflatts is set to close by the end of the month.

Triphase Ltd has made around 30 of its workers redundant, leaving less than 20 to complete its remaining orders.

Managing director Sandy Grieve said: "We're running out of road. Unless we hear some good news this week I don't think we will see the end of the month."

A year ago Triphase, which makes industrial freezing systems, employed 100 people, but since then the workforce has been cut to 50 in anticipation of dwindling orders. But the downturn has been more severe than expected.

Mr Grieve said: "We had expected a downturn in business due to the strength of the Euro and the pound against the dollar. We did about 30 per cent of our business in Europe.

"But British bakeries are under increasing pressure from supermarkets and one of our major US customers has been taken over, so things have been much worse than we anticipated.

"Our financial backer, who underwrote development costs, is reluctant to continue under the present circumstances.

"We need some quick orders to demonstrate that we can do the job, but food manufacturers are under desperate pressure from the supermarkets and are not making the usual capital outlay."

Mr Grieve added: "We are making world-leading large spiral systems for the food industry, and our designers and fabricators are the best in the world.

"We have top-quality workers, in terms of skills and integrity, and I am desperately disappointed that it has not worked out for them."

Triphase has had a chequered history since it was formed as Spooner Lewis, part of the Ilkley-based Spooner Food Industries Group.

It was later sold to Sandvik and then to world-market leader Frigo Scandier.

It was closed down and then resurrected by a small technical and sales team, but again went out of business until a group of local investors re-launched it as Triphase in Keighley 13 years ago.

It has been based in Crossflatts for seven years.