A CHEMICALS company is considering cutting its 1,800-strong workforce.

Huntsman's Wilton site is under pressure to identify savings because global economic pressures are forcing the industry to tighten its belt.

The US-owned firm, which must cut £120m from its global budget, last night admitted there could be job losses if other means could not be found to save money.

Morale at the plant is already low because workers are facing a four-year pay freeze.

The company has been locked in talks with trade union officials trying to resolve the problem. There have been suggestions that staff are prepared to strike in protest.

Bill Perfitt, Huntsman spokesman, said management was still in talks with union representatives.

Mr Perfitt said: "We cannot rule out job losses and it will depend on what we agree with our employees and their representatives, but it is early days yet.

"It is a sad fact, but that is what you have to do when you want to minimise costs.

"The financial situation of the company is extremely difficult as we have large debts and need to pay them off."

Mr Perfitt blamed the need for the cost-cutting exercise on a world recession. He said the chemical industry had been hit particularly hard.

He said that cheap competition, more expensive raw materials and a slump in demand had hit the firm.

Transport and General Workers Union branch secretary Peter Atkinson has written to Jon Huntsman, founder and chairman of the company, to ask him to intervene in the negotiations.

He wrote: "Morale of my colleagues is at rock bottom.

"It is worse now than it ever was under ICI and the sense of mistrust of management has returned.

"I have worked on this site for 25 years and never heard anyone mention strike action before, but this is now on just about everyone's lips."