Talks have ended over a potential buyout of Avonmouth-based smelting firm, Britannia Zinc.

US metal trading company Marco International was considering buying the works, but talks have now been terminated.

No reason was given due to a confidentiality agreement signed between the two companies.

In December last year, a 90-day consultation period was announced after reports of financial losses at the plant.

Unique plant

The plant, a zinc smelter, is at Avonmouth near the Severn Estuary and employs nearly 500 people.

Ross Holborow, general manager at Britannia Zinc, told BBC News Online: "The preferred position is still to find a buyer.

"The decision to close the plant has not yet been made, and will be taken by the board in Brisbane in mid-March."

The Australian company that owns the works, MIM Holdings, said it was forced to consider closing the plant because it was 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.