One of Europes biggest folding-carton firms, Field Group, may close two of its Scottish factories and is set to shed staff because of the tumbling economy.

The move is one of several options for Field, which merged with First Carton Group a year ago.

Bob Houghton, Field Group marketing services manager, said: "Ultimately I think there will be downsizing, but it is too early to say how many job losses there could be." East Kilbride has around 190 staff and Edinburgh 180.

A double closure could lead to a new building on a UK greenfield site or in Europe. The latter offered lower manufacturing costs, but Britain boasted a strong customer base, Houghton said.

Another option would see staff gathered together in one of the factories, but job losses would still be likely.

"We have been under constant pressure," said Houghton. "The market is phenomenally competitive and the weakness of the euro has not helped."

Both plants produce high-volume cartons for confectionery and alcohol products such as Johnnie Walker Red and Black Label and Chivas Regal.

Kit includes flexo presses with back-up from Heidelberg and MAN Roland litho presses. Both plants have new kit and layouts.

The firm is consulting with the GPMU, whose national officer for Field Group, Mike Griffiths, was unavailable for comment.

Chesapeake Corporation bought Field in 1999 and brought it into its 5,000-staff paperboard-packaging arm.

Story by Jez Abbott