A PRINTING company has threatened to pull out of Worcester unless it is allowed to relocate within the city.

Goodman Baylis, which has 150 staff, wants to leave its London Road base and says the move must be funded by a housing development on the site.

But that idea has been vetoed by city councillors, with one branding the firm "greedy".

Goodman Baylis' managing director Ian Cranson, said that the company is committed to staying in the city but would look elsewhere if pushed.

"It's a very competitive commercial environment, so if moving out of the area is the only option, then so be it. There's no rules to this - we've got to do whatever we can to make the business profitable," he said.

"They've missed the point if people say it is greedy. Any gain we get would be used to pay for the move and to build a new factory. It is not being done as a money-making exercise."

The city council last week unanimously blocked changing the designation of the factory from employment to housing land - they said no alternative site had been found and were concerned about the potential loss of jobs.

"It's time to put this one to bed once and for all. This is not to do with developing the area into something but is about money," said Coun Mike Layland.

"This site as employment land is probably worth £1.5m, you're talking in terms of £6.5m for housing. I can understand the wish to get housing there - it's called greed."

Residents living nearby also condemned the plan by sending 26 letters of objection with none in support.

The company, originally called Ebenezer Baylis, has been based in Worcester for 136 years. In the summer, it revealed it wanted the ability to expand to up to 200 staff by switching to 24-hour production close to the M5.

The potential pullout by Goodman Baylis would be another blow to Worcester's job market. Last month, catalogue company Morses Club, in St John's, announced 100 staff could be axed while speculation continues that Warndon-based Cosworth Engineering could shut with the loss of 450 jobs.