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A MEAT factory which employs more than 1700 people could be forced to close, it has been announced.

Vion Food UK, which owns Hall's of Broxburn, said the factory was loss-making despite heavy investment in the site over the last four years.

The company said it was beginning a 90-day consultation exercise with its unions and workers at its West Lothian site.

Vion UK chairman Peter Barr said: "This is an extremely sad day and one we have strenuously tried to avoid for the past four years, but the huge losses being incurred mean we believe we have no alternative.

"Every possible step has been taken to secure the future of the business but we are currently losing £79,000 per day at the site, which is clearly unsustainable.

"There is significant over-capacity in the UK meat industry and market conditions are extremely challenging."

Mr Barr said the latest accounts for the firm showed a significant deterioration in finances compared with the previous year.

He added: "Over the past four years, we have restructured this plant, invested heavily in the site and have brought in new management from across the group in an attempt to stem the losses, which have arisen in part due to the complexity and inefficient layout of the plant.

"Regrettably, the plant remains very heavily in the red despite our best endeavours."

The factory was bought by Vion Food Group in August 2008 and currently employs 1150 permanent and 595 agency staff.

It is a major processing facility for Scottish pork used to make sausages and other meat products, handling around 8000 pigs each week.

Mr Barr said: "If the plant closure is confirmed, we will take all practical steps to work with the relevant agencies to minimise the undoubtedly significant impact on jobs and local economies."

John McGinty, leader of West Lothian Council, said: "It is a shock to hear the scale of the potential job losses at Vion Foods in Broxburn.

"Vion is a major employer in the area and this is undoubtedly a serious blow in what is already an extremely challenging employment market."

Mr McGinty said the council would work with local communities and the Scottish Government to help those affected by the announcement.

Lothians MSP Neil Findlay said the news was a crushing blow for the area.

He said: "The task that we face now is to endeavour to keep the plant open and to protect and help the workers in any way that we can.

"Last September the First Minister announced that Hall's would be remaining at Broxburn courtesy of £1.495million from Training Plus funds from Scottish Enterprise.

"On that basis, I would also ask that the First Minister become personally involved in this awful situation now facing the workers at Halls."

Finance Secretary John Swinney was due to visit the factory this afternoon.