UNION bosses claim 175 potential job losses at Grimsby's Bluestar Fibres will be a "massive blow" for the local economy.
The company met with staff and union representatives yesterday morning to discuss the potential production stoppage at the plant.
Employees have entered a 45-day consultation about the potential job losses – but Ian Wood, regional officer for Unite, said this should be extended to 90 days.
He added: "Consultation periods for potential redundancies of more than 99 people used to be 90 days but the Government, in its wisdom, reduced that to 45.
"It means the poor souls who are due to lose their jobs in the first round of redundancies only have until July.
"We are asking Bluestar to extend this period to give us more chance to negotiate and to allow us to offer help and advice to those affected.
"It is going to have a major affect on the local economy, not just because of the increase in unemployment, but because of the impact on local suppliers and shopkeepers who rely on the employees for their trade.
"This is a real blow for Grimsby."
Mr Wood said union representatives are still trying to establish the exact reason for the closure.
He added: "We've been told it is because of the economic downturn, but we are aware that the company is building a new plant in China.
"We want to know if the money is being taken out of Grimsby to fund that."
Nobby Styles, who is a Unite union convenor and works at Bluestar, added: "We held our first consultation meeting yesterday and had a good, meaningful discussion about the best possible outcome for everyone affected.
"The workforce has worked very hard over the years and it is upsetting and regrettable that this has happened.
"The management would like to thank the support and hard-work of staff throughout their time at Bluestar.
"Further meetings are planned in the near future."
