CHEMICAL group Basell is closing its Wilton polypropylene plant with the loss of 160 jobs.

The German company plans to close the site, and two other plants in Spain, due to over-capacity in Europe.

There is a possibility that some of the Teesside workers could be redeployed elsewhere within the group.

Robert Genin, president of Basell Europe Polypropylene said: "Approximately 160 workers at Wilton will be affected by our plans, but we will treat all those involved with fairness and dignity.

"There will be some limited opportunities for redeployment within Basell and we will provide all employees with a comprehensive support and severance package, including an outplacement service."

Basell is the fifth largest supplier of polyethylene in the world.

Mr Genin said: "The steps are being taken after a careful review of all assets to access their viability.

"We appreciate all the efforts that have gone in to trying to make the plants efficient and productive, but they have remained among our highest cost operations.

"By taking this action now, Basell will improve its financial position and make a major contribution to reducing over-capacity in Europe."

Redcar MP Vera Baird has called for a meeting between the Trade and Industry Minister and bosses at Basell and other chemical companies at Wilton.

She said: "There are many successful companies working on the Wilton site and they are succeeding despite the downturn in the US economy and adverse world trading conditions.

"We have got to see more investment flowing into the Wilton complex and this appears to need to be given a kick-start by the Government."

l Lab Medico Legal Services, of Peterlee, has announced expansion plans which could create up to 120 new jobs. The company, which provides medical reports for solicitors acting on behalf of clients involved in personal injury claims, is planning a move to larger premises on the Bracken Hill Business Park.