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The Sonae chipboard plant on Merseyside is to close.
The decision by owner Sonae Indústria is blamed on the downturn in construction demand coupled with a major fire last year.
Around 220 jobs will be lost as a result.
Sonae will continue supplying the UK market from other plants in Europe.
The company statement said: “The decision is the result of the long delays to the reconstruction of the factory due to political and licensing difficulties and the reduced and unsustainable capacity levels that have ensued.
“Therefore, as from today, no further manufacturing will take place at the plant and almost all the workforce will leave the company.
