Croda International said jobs could be lost at its gelatine manufacturing plant in Widnes if a buyer for that part of its business was not found.

It follows falling sales in the food and cosmetics markets which have been affected by the BSE crisis.

The group, based in Goole, East Yorkshire, said it would now focus on its core personal and healthcare markets.

Operating losses

A Croda spokesman said: "If a buyer cannot be found then clearly jobs will be at risk."

Results for the first nine months of 2002 showed the gelatine business had generated sales of £8.9m while operating losses were £600,000.

It said the cost of withdrawing from the sector would be about £9.8m, of which about £8.5m would be a write-down of assets.

Kevin Coyne, of the union Amicus, said the job losses were of "major concern".

He added: "It is particularly worrying as Croda has had a very good track record in the past.

"We will be seeking an urgent meeting with Croda management."