THE company that built Worcester Fire Brigade's first fire engine looks set to close after 160 years of business.

All of the employees at CSS Fire Vehicles, were made redundant on Tuesday, according to a source.

The business, formerly Carmichael, in Weir Lane, Worcester, was once one of the city's largest employers.

The insider claimed that the business is set to enter liquidation later this month, although this has not been confirmed by CSS Fire Vehicles.

City councillor Richard Udall, who represents the area, said: "It's a tragedy for everybody that works there. "It was one of Worcester's largest employers at one stage, as one of the few fire engine manufacturers in the country.

"But it hasn't been able to keep up with competition - mostly from outside the UK.

"There are too many fire appliance manufacturers and not enough customers.

"It's a very competitive market and with fire authorities under constant pressure to make savings they can't buy new appliances."

A source, who is familiar with the details of the closure, said: "There used to be about 170 people there in its heyday. It's a shame, it's a historic company.

"They used to have a factory on Gregory's Mill Street and petrol stations on each entry to Worcester.

"They have had several buyouts. They are in Malaysian hands at the moment."

The insider said around 25 full-time members of staff were made redundant on Tuesday.

They added that some of the workers had been with the firm for more than 30 years.

The company's website states that it built the first fire engine for Worcester Fire Brigade in 1947.

Carmichael was started as a coachbuilder in 1849 and exported to 80 countries.

CSS Fire Vehicles was unavailable for comment.

Do you have any old pictures of the Carmichael factories? If so, please email md@worcesternews.co.uk or ring 01905 742263.