PEOPLE IN Lydbrook were in a state of shock this week with the announcement that SCA Packaging's riverside plant is to close with the possible loss of 140 jobs by next March.

The firm's public relations officer at the Aylsford, Kent HQ, Mr Tony Treasure, confirmed the closure plans on Tuesday and issued a statement.

It said: "The company will be consulting with employees and their representatives about the plan and the implications for their future.

"All employment rights will be fully respected and the company will, as part of the consultation process, be reviewing possibilities for redeployment."

The news follows an extensive review by SCA of its asset base in the South West, as a result of which it has decided to service its customers in the region through one plant in Newport, says the statement.

It adds: "As a consequence of this proposal SCA Packaging has entered into consultation with the relevant trade unions with a view to closing SCA Packaging Lydbrook, Gloucestershire, with effect from the end of March 2002."

The future of the large area of warehousing, known as the Cable Works from its wartime role and once the home of Reeds, is uncertain and the company was not prepared to talk about it at this stage.

SCA is part of Swedish group Svenska Cellulosa Aktiebolaget, a leading producer of packaging and forest products and Europe's main corrugated packaging company and a major recycler.

Its net sales, £1.78 billion, were 24 per cent up last year and the company at present employs a total of 20,000 people.