Around 300 jobs could be lost at a Teesside textiles company after a fall in demand.
Invista Textiles has begun consulting trade unions and employee representatives regarding a proposal to cease production at the Wilton site.
The firm, which makes nylon for carpets, airbags and paints, also blamed tough competition from international markets for the decision.
A spokesman for Invista praised staff at the plant for their loyalty.
A task force, headed by Redcar and Cleveland Council, is to be established to help find new jobs for those affected.
Warren Primeaux, president of Invista Intermediates, said: "We continue to appreciate the hard work and loyalty of our employees at the Wilton site.
"This is a sad and difficult time for everyone, particularly those workers and their families"
"We have come to the difficult decision that these proposals are necessary after a thorough evaluation of the site's current and potential future viability."
In 2004 the Wilton site underwent a £290m refurbishment.
Stan Higgins of the North East Process Industry Cluster (NEPIC), which represents 500 chemical and textile firms in the North East, said: "We were sorry to hear the decision, though in the current economic climate this comes as no surprise.
"We are finding that those companies that supply large quantities of materials that are used in houses, cars and large engineering structures experienced a fast and severe downturn in the demand for their products at the end of last year."
Redcar and Cleveland Council leader George Dunning said: "This is a sad and difficult time for everyone, particularly those workers and their families, but we remain committed to ensuring we do everything in our power to regenerate our borough.
"There are no easy solutions, but we want to assure everyone affected by Invista's announcement that we will be working extremely hard to ease the impact."
^ Back to top | BBC Sport Home | BBC Homepage | Contact us | Help | ©
~RS~q~RS~~RS~z~RS~25~RS~)