PRODUCTION at a Radcliffe cigarette paper-making factory may be stubbed out with the loss of 170 jobs.

Robert Fletcher's, based at Market Street, Stoneclough, since 1823, has announced the proposed closure of its paper mill.

It is yet another worrying blow for the town which is still waiting to learn the fate of the troubled East Lancashire Paper Mill.

The high cost of woodpulp and energy combined with an inability to recover cost increases in sales prices due to the strength of the Pound compared with the Euro have been blamed for Fletcher's difficulties.

A spokesman said: "We are in consultation with staff and unions to try to find an alternative to closure." If a solution cannot be found the company plans to consolidate its business at its site at Greenfield, Oldham and manufacture there. Should this be the case 50 new jobs would be created which would be filled by some of those made redundant at Stoneclough.

Managing director Mr Neil Robertson said: "We very much regret the proposed job losses at the Stoneclough site, but drastic action has to be taken in order to safeguard the business and the remaining jobs."

Meanwhile there is still no firm news about the fate of the East Lancashire Paper Mill.

Since it went into administration in January, 40 of its 250-strong workforce have been axed.

As with Fletchers, the strength of sterling and escalating raw material costs have been blamed.

Chartered accountants Arthur Andersen have been recruited to try to find ways of stopping the company going into receivership.

A spokesman said that potential buyers are still interested in the business and that good progress was being made in returning the company to profit.