ABOUT 120 jobs are under threat at a Nelson factory, it has emerged.

Smurfit, of Edward Street, who make paper-based packaging products, have told shocked workers the factory could close following the company's merger with Kappa last month.

Union representatives believe the site is definitely earmarked for closure and are trying to set up a meeting with the company as soon as possible.

Today, civic leaders said they would do everything possible to help workers and Pendle needed to redouble its efforts to diversify its economy.

In a statement, Smurfit Kappa, said it was considering the future of a number of its uneconomic' plants in Europe, including the UK, but refused to comment further.

Transport and General Workers' Union regional industrial organiser Julie Burgess said: "Obviously we are concerned that over 100 jobs could be lost.

"I've been in touch with the shop steward and we are hoping to meet with the company shortly to discuss the matter and hopefully turn it around.

"Smurfit is now Smurfit Kappa, they have merged with the Kappa group and obviously when something like that happens you're suspicious about what changes they are going to make. We didn't expect this. A site in Essex is being downsized.

"The reaction so far is that people are shocked and dismayed and concerned for their future. There are about 120 workers and we believe they are all to go."

Chairman of Nelson Committee Coun David Foster, who worked at Smurfit from 1974 to 1983, said he was devastated' at the news and councillors will discuss the potential closure when they meet on Monday night.

He said: "I estimate that some £350,000 a year will be lost to the economy of Pendle in wages alone.

"Many of the employees are young people with families and will find it hard to find alternative employment within Pendle. As a council we need to help these people to find alternative employment and I suggest that we start by talking to the management of Smurfit and the unions involved to see what help we can give short term and look at the long term prospects to secure employment for the area.

"We also need to redouble efforts to diversify our local economy. The largest growth industry in the UK is the Tourist industry, Pendle is just starting to wake up to this fact and we must encourage more people to invest in tourism.

"We need people in Westminster and in Europe to come on board with funding streams and investment. Elevate is a sticking plaster for a major wound and won't stop the bleeding unless many more millions are invested into Pendle."

Pendle Council will try to encourage more companies to relocate to the area and councillors are calling for Lancashire's Economic Development company LCDL to intervene in the closure plans.

Ireland-based Smurfit Kappa has more than 30 plants and has been operating in Nelson for 40 years.

The firm used to own the Burnley plant which was sold off and later became Papermarc - that company folded last year with the loss of hundreds of jobs.

In a statement, the company said: "Smurfit Kappa Group today confirmed that it has commenced a process of engagement with its Works Councils and Trade Unions to address the rationalisation or closure of a number of uneconomic plants in its European operations.

"Plants in a number of countries including the UK, Spain, Germany, France, Italy and Sweden are potentially impacted by a consultation process which covers all of the main product areas of the group.

"No further comment will be made during the consultation process. The group will make a further announcement as appropriate."