NEARLY 300 people may be facing redundancy after it was announced that Avon Rubber plans to close its automotive factory in Trowbridge.

Stunned workers were sent home after the news was broken to them on Wednesday, 5 December.

Roger Hunt, one of the company's directors, said: "After a review of UK operations we are proposing that we don't renew the lease on that factory in 2003."

If that proposal is adopted it could mean the loss of 273 jobs in Trowbridge and a further 12 at the company's Bowerhill site in Melksham.

Jeff Osborn, mayor of Trowbridge and economic portfolio holder for West Wiltshire District Council, said: "I am shocked by the news and have particular concern for all the employees.

"I hope they will do their best to ensure people are well treated and help them find other jobs.

"The West Wiltshire Economic Partnership will be working with the Employment Service and the district council to try and soften the blow, and to make sure we get new investment into Trowbridge.

"The big concern is the loss of the manufacturing plant. It is indicative of some of the other changes taking place, and is greatly regretted."

Avon Automotive, known locally as Avon Hose, manufactures hoses for cars, a business that, under this recommendation, will be transferred to the company's factories abroad.

A worker, who did not wish to be named, said: "It was a real shock to hear this. One reason is the strength of the pound against the euro and it is just so much cheaper to take the business abroad."

The company will now commence a 90-day consultation period before the move can be confirmed.

Mr Hunt said: "We will have a better idea of the situation once that consultation period has been completed."

A statement released by the company showed that profits had dropped from £15.4 million in 2000 to £8.7 million this year.

The company has already disposed of similar facilities in the USA; in Michigan and New York State.

The statement said: "There is increasingly aggressive pricing in Europe for low pressure hose, mainly from facilities in Eastern Europe.

"We are well placed with low labour cost operations in Portugal and the Czech Republic, but the UK has become increasingly non-competitive."