PRIME Minister Tony Blair will be asked to step in today to help save a doomed Chorley factory which is set to close with the loss of 130 jobs.

The award-winning Marconi plant in Carr Lane is being axed by the telecommunications giant.

The shock announcement, made on Friday, left workers stunned and some were in tears after hearing the news.

Chorley MP Lindsay Hoyle was locked in talks with management and union representatives yesterday (Tuesday) and is urging the firm to reconsider.

The Labour MP plans to bring up the matter in a Parliamentary question to the Prime Minister in the Commons today.

He said: "The closure is a blow to the loyal and highly skilled workforce here in Chorley who have strived to make the firm a success for nearly 40 years.

"I believe the employees are paying for previous bad financial management by Marconi.

"I have tabled an Early Day Motion in the House to call on the firm to reconsider the decision and to condemn the growing trend for manufacturing employment to be farmed out overseas."

Marconi Interactive Systems called all staff into a meeting on Friday morning to announce the phased closure, blaming the move on a dramatic decrease in turnover.

The company said poor sales of its multi-media and web-based products and the growth of mobile technologies, had devastated orders for the payphone products produced at the site.

A spokesman said: "Increased competition from overseas and growing sales of mobile phones has meant we have had to look closely at this area of our business and a decision was taken to shut it down."

He said the firm will try to redeploy as many of the staff affected as it can to plants in Liverpool and Coventry, but conceded that many staff are at risk of compulsory redundancy before the end of the year. A letter from Rod Smith, the managing director for Marconi - Northern Europe, was handed out to all the staff at the meeting, explaining the situation.

It stated: "We realise this is a deeply worrying time and will do all possible to support each of you over the coming weeks and months, and request your assistance in this process over the same period.

"This proposal and the implications for employees will be the subject of consultation with trade union and elected representatives. The process of electing representatives for the Chorley site will begin shortly, and details of consultation and the election process will be communicated by e-mail after this announcement."

Mr Smith also confirmed that Marconi is looking to transfer some of the production to its plants in China, where labour costs are significantly cheaper.

The closure will mark the end of an era for manufacturing in Chorley as the plant, formerly known as Plessey's, began operating from the Carr Lane site in 1967, and has since won a number of awards, including the national Kiosk Com interactive excellence awards for the last two years.

Numbers employed at the plant have declined over recent years but it is still one of the largest private employers in the area.

After the announcement at 10am on Friday, management gave staff the rest of the day off to come to terms with the news.

One worker, who has been employed at the site for the last 17 years, said: "We knew the firm wasn't doing well, but it still came as a massive shock to tell us the place was shutting. Many of the girls were in tears after being told the news."

Steve Power, regional officer for union Amicus, met with company bosses yesterday to discuss the options. He said: "We want to avoid compulsory redundancies wherever possible and there is much to discuss."