Chipboard manufacturer, Sonae Industria has announced that Sonae Industria (UK) Ltd’s Particle Board factory in Knowsley, Merseyside may close.

Parent company Sonae Indústria, cited that long delays in obtaining planning approval for plans to reconstruction the plant (following a fire in June 2011) coupled with the economic crisis had ‘affected the viability of this plant’ and have now started a 90-day consultation with employee and trade union representatives to discuss the future of the plant.

Based at Knowsley Industrial Park and employing 220 people, the Particle Board plant has been in operation for the last 12 years and has seen Sonae become the UK’s largest recycler of wood waste. If the plant closes, it would further damage the UK’s wood waste industry, as low demand for woodchip has put economic pressure on many businesses.

Nigel Graham, Managing Director of Sonae Industria (UK) Ltd announced the consultation on Friday (27 July), saying: “It is with great sadness and regret that after 12 years of operating in Knowsley, consultation will commence on the future of this factory.

“This will affect us all. It will be of little consolation, but at this difficult time, I would personally like to thank our loyal workforce for their ongoing hard work, loyalty and dedication.  We will be focussing on talking to employee and union representatives, customers and suppliers regarding the next steps.”

Sonae Indústria has said that it intends to continue supplying the UK market.

More information can be found on the Sonae Industria website.