About 250 Nissan workers will be redeployed after car maker Nissan announced plans to stop cylinder head production at its Sunderland plant.
The decision was made when Renault, its only customer for the engine part, did not renew its contract.
The casting plant has been operational at the Wearside site for 30 years.
A spokesperson for Nissan said: "From early 2024, Nissan Sunderland Plant will cease production of cylinder heads on site."
They added: "We do not expect this to result in job losses, and are working with staff as we redeploy them to other parts of the business."
Reacting to the announcement, Washington and Sunderland West Labour MP Sharon Hodgson said: "I have met with Nissan to discuss their announcement that they will be closing their casting operation at end of 2023, after their contract with Renault was not renewed.
"It is concerning that Nissan will be losing this operation, especially for the 250 workers, but Nissan have assured me that there will be no job losses as all staff will be redeployed within Nissan.
"I will also meet with Unite officials as soon as can be arranged."
Last year Nissan announced a major expansion of electric vehicle production at its Sunderland site creating 1,650 new jobs building its next generation all-electric model.
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