The facility forms part of the production site in Telford, Shropshire, where the bulk of work is involved in engineering plastics for the automotive sector.
Telford has been identified by French parent company Plastic Omnium for closure, as it is looking to cut costs through rationalising production.
It is believed the company's automotive arm, which also operates from the Telford site, has been hard hit by the demise of car manufacturer Rover last year. However, some of this work may now be transferred to another Plastic Omnium plant in Derbyshire, which is also involved in making plastics for vehicle components.
Cheaper production on the continent and potentially in Eastern Europe is thought likely to mean that bin production of 140 and 240 litre bins will be transferred from the UK.
It has been reported in the European press that 200 jobs could be on the line with the closure of the plant.
Consolidation
In its latest nine-month financial review, the company said: “Plastic Omnium is continuing to rationalise its manufacturing resources. It has taken the first steps that will lead to the closing of its plant in Telford, UK, in 2007, and the consolidation of all its operations in Britain in a single site.”
The review also showed that Plastic Omnium's Environmental division, which includes containers, achieved a weaker level of growth than the automotive division.
Plastic Omnium Environment achieved a 4.6% rise in sales whereas automotive equipment rose by 15.2%.
The company was unable to comment today on the announced closure of the Telford plant.
Register for free to comment