AN Altham firm which flouted regulations by operating without permission is facing closure after being refused planning consent over a "nauseous smell" coming from the site.

Production Glassfibre fears more than 40 jobs will be lost if it has to stop manufacturing from its unit on Altham Industrial Estate.

It moved to the site in June, but has been manufacturing from a unit that only has permission to be used for storage and distribution.

Hyndburn Council has blocked the firm's application to change the use of the building, in Shorten Brook Way, and retain 10 flues, a compressor room, a dust extraction collection system and four secure storage cabins that have been added to the site.

Members said it would have an "unacceptably detrimental impact" on neighbouring businesses, particularly due to odours emanating from the plant.

What More (UK) Ltd, which operates near to the firm's base, objected to the planning application, claiming that the emissions were causing a "nauseous smell".

Production Glassfibre said the odour came from its use of styrene, but said the levels were 25 per cent below the legal maximum and well below recommended levels.

It said that refusal of permission was being based on a subjective analysis of the smell and that the filter system it had in place had proved successful in its other plant in Kirkcaldy, Scotland.

The company also stated that it had been able to safeguard 24 jobs and create 20 more by moving production to Altham Industrial Estate and expected to create up to 75 more jobs in the near future.

However, committee members followed the recommendation of planning and environmental health officers and refused to grant planning permission.

In a report to the committee environmental health officers said the current system of dealing with the odour was "ineffective" and that the firm needed to provide a plan of how it intended to stop the odour problem.

Speaking at the meeting development control manager, Brent Clarkson, said: "We have no wish to close down any factory which employs people, but the role of the planning authority is to achieve a situation where the applicants can continue their business, but without an unacceptable impact on other businesses.

"I am sure our environmental health colleagues could point them in the direction of engineers who can give them some advice."

Steve Grossi, the company's group managing director said he is awaiting written confirmation of the planning decision from the council before deciding if he will pursue an appeal.