A STEEL fabrication works which won the Queen's Award to Industry is set to close.

Employees at William Hare Ltd's works, on the border of Astley and Tyldesley, have been told that due to a continuing poor economic climate it proposed to close the Gin Pit depot.

About 50 employees will be affected at the steel construction company's operation, which is based on the former colliery's workshop site at Meanley Road. It is understood the first round of redundancies will begin on October 7 and the rundown process will last until next March.

A company spokesman this week confirmed notice of the company's proposals had been presented to workers and said consultation would begin with union representatives.

One employee said: "Machinery and plant is being sold and removed from the Gin Pit works and on site security has been stepped up." Another said: "Crane drivers and most of the mobile cranes have gone -- it's all been very secretive. The rumour is that developers want the site for housing."

William Hare closed its Bolton operation several months ago but still has a depot in Bury.