The Britannia Zinc Works near Bristol looks certain to close, with the loss of around 500 jobs.

The plant, a zinc smelter, is at Avonmouth near the Severn Estuary.

The Australian company that owns the works, MIM Holdings, said it has been forced to take the action because it is losing around �2m a month.

The zinc works is the only one of its kind in the UK and has been at Avonmouth for more than 50 years.

The works have been at Avonmouth for 50 years

Vince Gauci, MIM Holding's managing director, said: "Our two European zinc smelters have been non-core businesses and have been sustaining cash losses despite operating improvements."

Britannia Zinc plans a 90 day consultation period, when it will consider alternatives to the closure.

Trade unions will be asked to contribute to the consultation process.