TWO hundred employees of the ColourCare photo lab in Downton face an uncertain future after Kodak announced the likely closure of the picture processing plant - one of Downton's biggest employers.

Citing "economic factors", the photographic giant blamed the threat of closure on the rise of digital cameras and mini desktop processors, which have caused a decline in demand for professional photofinishing.

In a statement released this week it said that the Long Close plant was expected to be the victim of "a thorough business review".

The fate of the workers now rests on the outcome of continuing negotiations between Kodak management and employee representatives.

Kodak runs a network of picture labs across the country and has said that "where appropriate" Downton-based staff will be transferred to other parts of its operation.

Spokeswoman Jennie Wild said that it was not possible to say at this stage how many people may be redeployed or where to.

"While we will try to fit in with people as best we can, it could be anywhere," she said.

At the end of 1999, ColourCare was looking forward to a bright future following a £55m management buyout.

But by 2002 its photo processing division was up for sale and Kodak secured the permission of the government's competition commission to move in.

The ColourCare name was retained but all of the staff were transferred to the employment of Kodak.

As a result of the sale, the company picked up several Kodak contracts and business was buoyant.

But now Kodak bosses feel that demand in this area has fallen and ColourCare is no longer paying its way.

A Kodak statement said: "We aim to optimise our lab network to meet geographical demand in the most efficient way."