JOBS at Chippenham's Avon Rubber factory are safe, despite a fall in profits and the likely closure of the Trowbridge plant.

A company spokesman said business was going well at the Chippenham plant, Avon Vibration Management Systems Ltd, in Bumpers Way.

Last week Avon Rubber announced a fall in pre-tax profits from £12.4 million in 2000 to £3.4 million in the year to September 29. Turnover remained stable at £278 million.

The Chippenham factory has a workforce of 305 and produces vibration management products, such as suspension bushes for cars.

"Everything is carrying on as normal," said the spokesman.

But the 273 staff at the Avon Automotive plant in Trowbridge are likely to lose their jobs because the company says it is doubtful it will renew the lease for the factory after March 2003. The management have now launched a consultation exercise with the Trowbridge workforce.

A distribution plant at Bower Hill, Melksham, employing 12 people, is also likely to close.

Avon Rubber is a major employer in West Wiltshire, with other plants in Semington, Westbury and Bradford on Avon.

Less than two years ago it opened a state-of-the-art factory at Semington that replaced its old factory in Melksham, which was sold to the American firm Cooper Tyres that bought the Avon tyre division.

Latest figures published by the company show borrowing was reduced by £11.9 million to £53 million in the first half of the year, and by £16.4 million in the second half of the year.

The company has been hit by a significant downturn in demand from North American car manufacturers, with levels some ten per cent below the previous year. A sharp downturn also followed the events of September 11.

Competitive prices for low pressure hose from eastern Europe were blamed for making the Trowbridge plant increasingly uncompetitive.

Roger Hunt, one of the company's directors, said: "After a review of UK operations we are proposing that we don't renew the lease on the Trowbridge factory in 2003."

Avon Automotive, known locally as Avon Hose, manufactures hoses for cars, and could be transferred to the company's factories abroad.

A worker, who did not wish to be named, said: "It was a real shock to hear this.

"One reason is the strength of the pound against the Euro and it is just so much cheaper to take the business abroad." The company will now commence a 90-day consultation period before the move can be confirmed.

Mr Hunt said: "We will have a better idea of the situation once that consultation period has been completed."

The profits slump was announced weeks after directors confirmed that they had embarked on talks that could lead to a takeover in the future.