Paving plant's future uncertain

Marshalls currently employs 2,650 people

The company which owns a paving stone plant in north Wales has said it may close, threatening 55 jobs.

Marshalls plc said it had begun a consultation process with employees and trade union officials at the plant in Llay, Wrexham, over closure proposals.

The firm is also considering closing another plant at Hambrook, West Sussex and cutting costs at its consumer arm, affecting a further 80 jobs in all.

The proposals are part of a drive to cope with "uncertain" markets.

The firm, which currently has 2,650 employees, said efforts would be made to preserve employment "wherever possible" if the Llay plant were to close.

David Sarti, Marshalls' chief operating officer, said the move was "regrettable" but was considered essential to align its manufacture with the current market demand.

The potential cuts emerged as Marshalls reported a 6% decline in sales to £378m last year.

Although commercial and public sector revenues - accounting for 59% of the business - were down just 1%, sales to the domestic market slumped 15% as DIY and new build markets faltered.

Marshalls said: "The overall demand outlook remains uncertain.

"The outlook for 2009 in the public sector remains positive but demand has weakened in the commercial and industrial sectors, with projects being delayed or cancelled as economic conditions have deteriorated."

The firm said it would concentrate on the "more robust" areas of the market in the months ahead as well as halving its capital spending.