The consultation is due to last until the end of February 2009, with 127 employees affected.

Arjowiggins has said that plants in Bor in the Czech Republic and Virginal in Nivelles, Belgium, are also being looked at as part of a restructure of the group's Carbonless Division, with consolidation in Belgium the current preferred option.

During the consultation process, Arjowiggins said it would look at alternatives to closing the mill; steps that could be taken to avoid or reduce the number of redundancies; and ways in which the effects of any redundancy could be mitigated.

If no alternative to closure is found, production is expected to cease at the end of April 2009, although the mill will operate as usual for the foreseeable future.

Should the mill close, production of thin printing papers will be transferred to Arjowiggins' Dettingen mill in Germany.

Frédéric Lang, mill manager, said: "As a consequence of the worsening of market conditions, we will be entering a period of uncertainty for our staff, their families and our local sub-contractors, and we must stress what a difficult decision this was to make.

"We recognise the loyalty and dedication of our employees who have performed to their highest ability, even during the recent downturn in business."

The site produces carbonless paper, used in typewriters and for duplicating signatures, and thin printing paper, which is used to produce advice leaflets for pharmaceutical products.

With the onset of email and advances in technology, it is no secret that the carbonless paper sector has been in decline. As a result, the plant has struggled in recent years, despite investment by Arjowiggins.

It is expected that all products will continue to be available via Antalis and other paper merchants in the UK without interruption.