A chemicals company has announced plans to close its site in Selby, North Yorkshire, with the loss of 128 jobs.
Clariant said the site in Bawtry Road would be wound down by the end of 2008.
The loss of a major customer account and a rise in the price of electricity, gas and other materials had left the firm with "no other choice", it said.
Clariant said detailed consultations with staff and unions would take place. It is looking at the possibility of offering workers jobs at other plants.
Peter Palm, country president of Clariant in the UK, said: "To arrive at the proposal to close our site at Selby was very difficult.
"We are, however, losing a major customer account, which is a large part of our business.
"The continued rise in the price of gas, electricity and vital raw materials together with the unfavourable exchange rate for our exports has left us with no other choice but to review production at Selby."
Mr Palm added: "I want to thank the staff for their hard work and commitment and assure them of our continued support through this difficult time."
In 2004 Clariant closed its plant in Beverley, East Yorkshire. Some 120 workers were made redundant, while 24 were moved to Selby.
The 32-acre site opened as a liquorice works in 1900 and was taken over by Clariant in 2001. It makes special chemicals for leather treatment products.