STAFF at Grimsby's Bluestar Fibres plant have today entered a 45-day consultation period.
Up to 175 of the 238 workers could lose their jobs as bosses say they have "no option" but to consider a production stoppage at the plant as a result of the economic downturn and a reduction in demand for its carbon fibre precursor product.
In its heyday, the former Courtaulds factory was one of the biggest employers in Grimsby, with nearly 3,000 people working at the Moody Lane site.
The company is currently exploring a "number of options" for the facility and hopes to secure a future for the business.
Hendrik Muller, CEO of Bluestar Fibres Company Limited, said: "It is very important that we remain positive and focus on securing future opportunities for both the business and its employees.
"Our parent company China National Bluestar Group has invested significant amounts of money into the business, including absorbing significant losses predominantly due to the lack of market demand globally.
"We are therefore considering a production stoppage.
"We will be preserving the plant facilities to enable us to potentially restart production subject to market conditions improving.
"But our focus in the meantime will be on the welfare of the workforce, helping them through a difficult time and ensuring that we look after them as much as we can and help to prepare them for new employment opportunities in the local region."
One employee of 15 years, who did not wish to be named, said: "It is a very worrying time for us all.
"We've known for a while that the company was struggling and was looking for buyers, but it doesn't make it any easier.
"It is such a niche industry that there aren't really any other jobs that we are qualified for in this area.
"We will all be competing for roles in production and as fork-lift truck drivers as those are the only transferable skills we have.
"I've got three young children to support and had just ordered a new car, which I've had to cancel now.
"Our house was up for sale and we had an offer on it but we're going to have to pull out of that now too because I won't be able to get another mortgage."
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