THE electric van maker started by North East company Tanfield is withdrawing plans for an initial public offering on the US stock exchange.

Smith Electric Vehicles (SEV), in which Washington cherry picker maker Tanfield remains a major investor, said it intends to withdraw its registration statement with the US Securities and Exchange Commission.

Bryan Hansel, Smith's Chief Executive Officer, said: “We received significant interest from potential investors, however, we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders.

“We have instead elected to pursue private financing opportunities to support the execution of our business plan."

Tanfield sold the majority of its electric van making interests to its US subsidiary company because of the greater government support and funding available for the technology.

But SEV, which is now based in Kansas City, has made losses of £81m since 2009 and was £17m in the red during the first half of this year.