NEARLY 600 workers at a Droitwich Spa factory face redundancy after a top client terminated a vital contract.
Christian Salvesen's leading customer, Sainsbury's, plans to axe the Spa depot from its network.
The Berry Hill Industrial Estate firm employs 574 people in warehousing, clerical, supervisory and transport roles.
The announcement was made on Monday.
Salvesen has admitted it will struggle to replace its premier client and, unless a new deal can be struck, the factory will close this summer.
A company spokesman said: "We have begun consultations with employees.
"If we close there will inevitably be redundancies but as yet we cannot say how many.
"Our first priority is ensuring that staff and recognised trade unions are fully informed over the coming weeks before any decision is confirmed."
Sainsbury's claims costs are too great at the Spa factory.
The supermarket giant plans to replace its national network of 22 depots with seven large regional distribution centres.
In February, the Advertiser revealed Sainsbury's was considering switching distribution from Worcest-ershire to a large depot in Birming-ham.
One Salvesen worker, who has completed seven years' service, said he was devastated.
He added: "Everyone is full of doom and gloom. I feel sorry for older employees.
"Some have worked here for decades and will find it hard to get work elsewhere."
Droitwich Spa town councillor Peter Pinfield (Lab, Droit.West) said: "This is a sad blow for the town and the future would look very bleak if we didn't have the new Stonebridge Cross Business Park, in Hampton Lovett."
The town's Tory MP, Peter Luff, said: "This kind of news is very painful for those involved but recent experiences suggest that anyone who does lose their job should find employment quite quickly."
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