Aluminium smelter Aldel, based in the northern town of Delfzijl, has applied for bankruptcy, Nos television said on Monday.

The news means 300 people in the Netherlands and 250 people on a temporary contract will lose their jobs. A further 300 people working for suppliers and associated companies will also be hit, Nos said.

The smelter has debts of an estimated €24m and has been unable to find new finance.

The company first sounded the alarm about its financial problems in September when it said high energy bills make German competitors cheaper. At the time, the economic affairs ministry and Groningen province gave the company a bridging loan of almost €8m.

The company was also working on a plan to bring in electricity directly from Germany in an effort to cut costs.