JOBS at Chippenham's Avon Rubber factory are safe, despite a fall in profits and the likely closure of the Trowbridge plant.

A company spokesman said business was going well at the Chippenham plant, Avon Vibration Management Systems Ltd, in Bumpers Way.

Last week Avon Rubber announced a fall in pre-tax profits from £12.4 million in 2000 to £3.4 million in the year to September 29.

Turnover remained stable at £278 million.

The Chippenham factory employs 305 people and produces vibration management products, such as suspension bushes for cars.

Staff at the Trowbridge plant are less fortunate and they are likely to lose their jobs as the lease for the factory will not be renewed after March 2003.

Management is undertaking a consultation with the 273 employees to find out if there is any way the situation can be salvaged.

A distribution plant at Bower Hill , Melksham, employing 12 people, is also likely to close.

Avon Rubber is a major employer in the county, with other plants in Semington, Westbury and Bradford on Avon.

The company has been hit by a significant downturn in demand from North American car manufacturers, with levels some 10 per cent below the previous year.

The company reported borrowing was reduced by £11.9 million to £53 million in the first half of the year, and by £16.4 million in the second half of the year.

Competitive prices for low pressure hose from Eastern Europe were blamed for making the Trowbridge plant increasingly uncompetitive.

Directors confirmed on October 26 that they had embarked on talks that could lead to a takeover in the future.