A NORTH-EAST town is braced for its third set of job cuts in as many months after it emerged last night that a milk bottle factory is facing closure.

Consultation has started with the 50 people employed at Nampak Plastics plant in Consett, County Durham as part of a cost cutting drive.

An MP said that the potential closure of the site at Number One Industrial Estate would be another “body blow” to Consett which was already reeling from the planned closure of Hassockfield Secure Training Centre and the KP Snacks factory, which will result in a combined 300 jobs leaving the former steel town.

“This is terribly sad news for Consett and an awful start to the new year,” said Pat Glass, North West Durham Labour MP, who plans to ask Vince Cable, the Business Secretary, to help the town which she said was being “devastated” by recent job losses.

Mrs Glass added: “I have visited the Nampak factory and was very impressed. It is a state-of-the art facility, so it comes as a real shock to hear that it is in danger of closure.”

South Africa-based Nampak won several design and environmental awards for introducing the lightest and strongest plastic milk bottle on the British market – branded as Infiniti - which is stocked by most of the leading supermarkets.

Workers at the Consett site told The Northern Echo that the company has been cutting back on production in recent weeks as it bids to make cost savings, understood to be about £2m.

Eric Collins, the company’s managing director, said: “It’s with regret that Nampak Plastics has entered into a period of consultation with a number of team members regarding the possible closure of the Consett site.

“For commercial reasons, the business is looking at ways to reduce its cost base and these consultations are a result of that. "All affected staff are being spoken to about ways of reducing redundancy numbers and alternative employment. The company is hugely grateful to all Consett team members for all their hard work and dedication over the years.”

Nampak is on the same industrial park as KP Snacks - maker of the famous Phileas Fogg crisps - which is closing in the coming weeks with the loss of 104 jobs. Some workers are being offered the chance to transfer to the snack firm’s sister plants at Tanfield, near Stanley, County Durham and Billingham.