Workers laid off at chemicals factory

The firm makes, amongst other things, photographic film

More than 120 workers are to lose their jobs at a chemicals factory in Lancaster.

It is expected the Acordis plant on Caton Road will close in September.

Acordis makes acetate products, used for items like spectacle frames and tool handles, but one of their biggest markets is for photographic film.

There has been a decline in demand for this as digital cameras become more popular.

Its understood the company had been looking at other markets such as computer displays but it is believed demand there was affected by trade conditions in America especially after the September 11 attacks.

Worsening losses

In a statement, the chief executive David Shaw said: "The business has for some time been incurring significant and worsening losses, reflecting increasingly aggressive price competition.

"It is now clear there is no realistic possibility of securing sales at margins sufficient to cover the operating costs of the Lancaster plant, and no foreseeable likelihood of any significant improvement in this position.

"We have concluded, with great regret, that we have no alternative but to cease manufacture and sale of cellulose acetate flake through the Lancaster operation."

'Terrible blow'

Acordis is beginning a consultation period with the workforce on Wednesday.

The city's MP Hilton Dawson said the news was "another terrible blow for the area's economy".

The news comes just days after another big Lancashire employer went into receivership

Imperial Home Decor Group is laying of half its workforce at its subsidiary company Crown Wallcovings' Darwen factory and more than 20 people working at the company's White Lund operation are to be laid off.