ONE of York's key employers, Thrall Europa, is to merge with an even mightier U.S.-based rail wagon manufacturer, it was revealed today.

The shock announcement left the Holgate plant workers reeling with uncertainty. In a staff memo, leaked to the Evening Press, Thrall bosses outlined the merger plans with Trinity Industries' Railcar manufacturing business which will eventually mean a change of name to TRNX.

And York's economic bosses have sprung into action to establish the implications for the future of Thrall Europa and its more-than 260 workers in the city.

They are particularly concerned about the future of the York plant, because Trinity already has three new wagon manufacturers in Romania.

And they are worried that York could become a prime target for closure if it fails to gain any more contracts in the near future.

A York Inward Investment Board official plans to travel to the U.S. for a face-to-face meeting with Thrall bosses in Illinois. A Thrall employee, who would not be named, said the merger had sent "shock waves" through the workforce.

He said: "No-one could believe it when the memo came round - we knew nothing about it.

"We're all worried about the future. The Railtrack wagons contract runs out this time next year - after that the order book is empty. Our bosses are calling it a merger, but it feels like more of a takeover because Trinity is so much bigger than Thrall."

But in the memo, Thrall chairman Craig Duchossois insisted that this was a merger, not a sale, and said it would "ensure that the Thrall tradition and organisational capability will live on for a long, long time."

Tony Bennett, assistant director of economic development at York, said: "We have been in touch with the company to find out what the implications might be, but it will be a while before these emerge."

He said that he was concerned to find out what the implications were of so many plants in Europe, and suggested that the uncertainty of any future orders for Thrall from Railtrack was "an issue that doesn't help."

Carol Moor, of the York Inward Investment Board, plans to go to Chicago to see Thrall bosses for a full briefing about the future.

Nobody from Thrall Europa was available for comment today.

Updated: 15:44 Friday, August 31, 2001