Parent company Federal Mogul said the site was losing money
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Almost 350 workers at a spark plug factory in Wirral have been told they will be out of a job in the New Year.
The Champion Spark Plugs plant in Upton has been losing money for years, its parent company Federal Mogul said.
Bosses at the US firm said they would enter into a 90 day consultation with staff with a view to closing the factory in spring 2006.
A spokesman said the firm had been hit by the growth of diesel cars, falling demand and cheaper imports.
'Increasing pressure'
"Despite the best efforts of our employees to help reverse this, the plant continues to lose money," he added.
"All of these factors have put increasing pressure on the business at Upton.
"It is with great regret that we have had to announce this proposal today (Friday)."
Champion Spark Plugs was established at the Upton site in 1968 and was taken over by Federal Mogul in 1998.