A 30-day consultation period has been announ-ced at the Lowfields site while they determine the fate of the business.

The company is seeking a buyer to save the plant from closure – which would mean 85 compulsory redundancies.

The metalware manufacturer, at Elland, supplies the constuction and motor industries, which it says have been hard hit by the recession.

A spokesman said: "In recent years the market for steel wire has contracted and the business has been loss making, despite significant efforts to improve the business's profitability and consolidation of manufacturing at Elland. Against this background, management continually reviews all aspects of its operations.

"The aim of the consultation is to try and avoid the need for redundancies or to minimise those that may need to be made."

The troubled firm, which was taken over by Russian company Severstal- Metiz in 2006, has already slashed its workforce this year, with 36 losing their jobs over the summer.

Employees have been told there is a fresh risk of job losses, though none har yet been announced. Community Union said it would seek to extend negotiations while there was a chance the business could be sold.

David Martin, union campaigns officer, said: "This is a difficult time for the workforce. The company has been on the ropes for a number of years and has relied on the dedication of the workforce to survive.

"We are doing everything we can to expedite a sale and will continue to defend the rights of our members at Carrington."