Workers at the Manston Lane factory have been fearing for their jobs since a formal consultation process over possible redundancies began during the summer.

But bosses have now announced plans to close down operations at another Optare site, in Rotherham, transferring the work to Leeds and the company's other base in Blackburn.

Optare was taken over in June by Blackburn-based bus builder Darwen Holdings, which has since adopted the Optare name, in a £15.95m deal.

A statement from the firm said: "Having recently completed our latest acquisition, Optare plc, we undertook an in-depth restructuring programme, the results of which will see our Rotherham manufacturing facility relocated to our facilities in Leeds and Blackburn.

"We are currently in a phase of consultation with staff and employees at the Rotherham facility, the conclusion of which is likely to result in some redundancies.

"Recognising the sensitive nature of undertaking this process, we continue to make every effort to minimise job losses wherever possible.

"For the avoidance of doubt, the management team can confirm the intentions to continue manufacturing in Leeds and Blackburn, thus ensuring significant job security for those involved in manufacturing at these locations.

"We anticipate a further update in the near future as we draw close to the completion of the consultation process."

Optare yesterday announced a change of senior management with existing non-executive director, John Fickling, becoming non-executive chairman in succession to North East businessman Roy Stanley.

Mr Stanley, who bought Optare in March before selling the company to Darwin, becomes a non-executive director.

Optare has been seeking volunteers for redundancy in Leeds.

The company, and its predecessor Charles H Roe, shares a long and proud history in the city.

Optare was formed in 1985 by workers from the former Charles H Roe company which was closed by British Leyland a year before. Roe had been at the Leeds site since 1923.

A planning application was submitted - and rejected - earlier this year to build housing on the Cross Gates site with the firm's then owners suggesting they would relocate to a new, unspecified location in West Yorkshire.

The new owners announced the proposed redundancies on Friday, July 25, and the process has been ongoing despite the firm winning a series of multi-million pound contracts.

Optare employs around 550 staff and has a turnover of £60m. It is best known for supplying buses to Stagecoach, Go-Ahead and First Group and is developing hybrid diesel electric buses which do less harm to the environment.