CHEMICALS firm BASF has started a consultation exercise aimed at cutting staff by 35.

The jobs will be lost as part of a restructuring programme at its Seal Sands operation.

The company blamed the economic climate for the losses.

It will take the total BASF staff on the site to below 220. A range of other companies work with the firm at Seal Sands, employing a further 300 people.

Ian Mains, public affairs manager, described the job cuts as unfortunate, but said they would help secure the longer-term future of the operation.

"Coming before Christmas, this is not ideal," he said.

"The industry, like most industries, is still in the downturn. Manufacturing is still in the doldrums and we have not really got on the up slope yet."

Asked about further redundancies, he said: "We are part of an international organisation which operates everywhere throughout the world. You cannot be 100 per cent certain this is the last."

The company hopes to make up the bulk of the job losses through voluntary redundancy.

Mr Mains said: "We do not know, at this point, how many, if any, are compulsory redundancies.

"It will take a few weeks to sort out. It will be early 2004 before we know exactly how many and who they are.

BASF manufactures bulk chemicals known as nylon intermediates that are sold to other companies to be used in the manufacture of domestic products, such as carpets, and white goods like fridges, freezers and cookers.