EIGHTY jobs are set to be axed at two York businesses as managers strive to cut costs and address trading challenges.

The potential redundancies are looming at Portasilo and Portastor, two sister companies based at Huntington and employing about 250 staff.

A spokesman said the businesses, which are part of the family-run construction firm Shepherd Group, were entering into consultation with employees and their representatives with a view to restructuring and reducing costs.

He said significant efforts had already been made in address the very difficult trading challenges experienced by both businesses in recent years.

He said the businesses would be consulting with employees at risk of redundancy and the eventual numbers affected would be dependent on the outcome of the consultation process.

"This is not a decision that has been taken lightly," he said. "We appreciate these proposals mean that employees will be facing a period of uncertainty about their future and we will do what we can to minimise this uncertainty."

Portasilo and Portastor manufactured and supplied plant and systems for the storage and handling of particulate materials.

The union Unite, which represents some of the affected workers, was unable to comment.