WILTSHIRE firm Avon Rubber is facing a loss of more than £1m because of the collapse of car giant MG Rover.

Avon Rubber, which has its headquarters in Bradford on Avon, expects to lose one per cent of its sales if production at Birmingham-based Rover does not re-start.

A spokesman said this would lose them £1.4m in sales but there would be no impact on jobs or production in Wiltshire.

Avon Rubber manufactures hoses for Rover in its European factories, not in Wiltshire.

Avon's automotive factory, based in Chippenham, had been hit by Rover last autumn. The factory had previously supplied Rover with vibration management systems, but Rover had decided instead to buy from a Chinese company.

She said: "By Christmas all of that business had been removed to China. At the time it did cause us some concern but we have been able to replace the business lost."

She said no jobs had been lost and the company had fully recovered.