165 jobs lost as BPI factory closes

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A factory which produces heavy duty sacks and industrial films is to close with the loss of up to 165 jobs, it was announced today.

British Polythene Industries (BPI) said the site at Stockton-on-Tees had made losses in the past two years, while demand for its products has reduced "dramatically" in the last six months.

"We expect little prospect for improvement as the UK economy enters recession," the company said, estimating that losses will be £2.5m this year because of the economic downturn, especially in the construction sector.

Around 40 per cent of the factory's output goes to construction firms, which have been badly affected by the current economic downturn.

The firm said it proposed transferring production to other sites in the BPI group, which could create 40 jobs next year.

"Regrettably there will be up to 165 job losses. Redundancy consultations have commenced with employees. Every effort will be made to find alternative employment either within or outside BPI," said the company.