Around 100 workers are set to be made redundant at the Cemex cement plant in South Ferriby.
Cemex announced on Tuesday it was planning to mothball the large plant, which will be a huge blow to the small village of South Ferriby and surrounding area.
The plant, a major industrial landmark on the south bank of the Humber, has been a major employer in the area for more than 80-years.
Mexican-owned Cemex is looking to cease production in North Lincolnshire this summer – in a move not linked to the economic impact of coronavirus, BusinessLive reports.
Earlier this year Cemex sold off a large number of ready mix plants to UK operator Breedon.
A Cemex spokesperson said: “The proposal to mothball the South Ferriby Cement Plant comes after an analysis of the company’s European cement supply chain.
“Cemex remains committed to the UK and its European business, which is one of the company’s largest regions, and will continue to have a strong national presence. This proposal will allow Cemex to optimise the network it has available across the region. This is part of the ongoing strategy to strengthen the Cemex portfolio and secure its place as a global leader in the industry.
“The coronavirus pandemic has not influenced the decision to consider mothballing the South Ferriby Plant. Although Cemex furloughed South Ferriby employees for a period of time, the business will not claim from the government scheme for these employees.”
The proposal is for the sprawling Humber Bank site to close during the third quarter – the period covering July, August and September.
In 2015 the plant re-reopened following a major investment programme after being hit by the Humber tidal surge and flooding in December 2013.
The spokesperson said: “If the mothballing proceeds, it is proposed that the site would be secured and managed after production ceases, and there would be a 24/7 security presence.
“All commitments to the local community will be maintained, including the agreement to continue supplying clay from the quarry to the Environment Agency flood protection project; clay will continue to be moved for this until project completion.”
Cemex customers will be supplied from the company’s existing cement network.