RISING costs have forced packaging producer Huhtamaki to axe 90 jobs at its Hampshire manufacturing plant.
The Finnish owned company is to make the cuts at its Gosport facility by closing down its plastic wrapping department. The company's food service department, which produces paper cups, will remain open.
Bosses have also moved to axe 70 positions at another plant in Northern Ireland, bringing the total number of job losses to 160.
The moves end Huhtamaki's production of rigid plastic consumer goods packaging in the UK.
A company statement said the decision was due to volume decline as well as continued increases in manufacturing and energy costs. The firm's UK Consumer Goods business unit is losing £23.8m a year.
Councillors described the losses as "disastrous" for the town's economy and forecast it would lead to greater numbers being forced to commute out of the area for work.
The news comes hard on the heels of another major jobs blow for Gosport when healthcare products maker Covidien axed 300 staff earlier this year.
Graham Barton, general manager of Huhtamaki's UK operations, said: "Both sites have a loyal and skilled workforce, many of whom have long service with the company."
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