YORK rail wagon manufacturer Thrall Europa will close in December, its parent company confirmed today.

Disappointed workers at the Holgate Road wagon works were told of the decision today, following the completion of a three-month consultation.

The closure, which means the loss of 260 jobs in the run-up to Christmas, is part of the restructuring plans of parent company Trinity Rail GmbH.

Jobs are also being shed at the company's plants in Romania and the Czech Republic.

The York factory is based on the site of the former York Carriageworks, which closed down in the mid-1990s.

Its closure by Thrall has been blamed on "insufficient ongoing demand" following the completion of a five-year contract for wagons with rail freight operator EWS.

Trinity will continue to maintain a sales, marketing and service parts business in the UK.

Chris Schmalbruch, president of Trinity Rail GmbH, said: "With this restructuring, Trinity remains well positioned to maintain its market leadership and to support growth in the future."

Trinity Rail GmbH produces all types of railway freight wagons, including intermodal, and tank wagons. It also produces forgings for a variety of railway and industrial applications. Its customers include national railways, leasing companies, private operators and shippers.

Brian Anderson, regional industrial organiser for the TGW union, said the workforce was not represented by the union.

He said: "I'm gutted for the workforce, the workers who genuinely expected that maintenance and repair work at least would continue into 2003 and perhaps even 2004.

"Clearly this isn't going to happen and now they face Christmas on the dole."

Updated: 15:13 Wednesday, October 16, 2002