McKechnie Plastics' factory at Wragby near Lincoln is to close by the end of March 2002.

The Company has given notice to shut down its entire operation at Wragby and move its production to sites at Stamford Bridge and Pickering in North Yorkshire.

The decision follows a fall off in orders for its products, the strength of the pound and the creeping recession in the UK manufacturing industry.

For employees, the closure presents more immediate difficulties with alternative work prospects scarce following recent factory closures of British Sugar and Morrell's, both in nearby Bardney.