Up to 11 staff, on assembly lines or making road signs, face redundancy at Duston-based Nordis Industries owned by Northamptonshire County Council.

A consultancy report proposes closing the firm's packing and assembly unit to save the council �150,000 a year.

A spokesman said the packing section was no longer profitable and more able-bodied people should be employed.

The section will be closed next year if the consultants' report is accepted.

Alternative employment

"Globalisation is having a negative affect on the assembly and packing industry across the country with much work being transferred to other parts of the world for cheaper labour and smaller overheads," said the council spokesman.

"Regrettably like many other businesses Nordis Industries is feeling the impact of this trend and with dwindling contracts for the assembly and packing section coming in the council is now considering closing this part of the business unit."

The council, which will consider the report on 10 October, said affected workers could be relocated to other parts of the company or receive help to find alternative employment.

The redundancies are not expected before April 2006, to allow time for a full consultation with staff.

Nordis employs four managers and up to 34 people with learning or physical disabilities.

The report looking into money savings also suggests the council reviews recruitment by employing more able-bodied people.