BRITISH Polythene Industries (BPI) has been hit by the growing foot-and-mouth crisis.

The company, parent of Stockton agricultural packaging products firm Visqueen, which employs 350 staff, said it was becoming increasingly concerned about the situation.

Chairman Cameron McLatchie, said: "The current outbreak of foot-and-mouth disease will have some impact on the results of many UK businesses. Our own agricultural business will be no exception.

"The full financial impact is very difficult to assess. What is clear, however, is that the farming community in the UK is under the most intense financial pressure, and a severe and prolonged outbreak could materially affect this important market for the group."

BPI's results for the year ended December 31, 2000, revealed a slump in pre-tax profits from £26.8m to £11.3m. Part of that slump was caused by the cost of fighting off a hostile takeover bid from packaging group Macfarlane.

BPI has also been hit by adverse trading conditions, and the strength of the pound, which has led the company to restructure its businesses. Fifty individual businesses have been streamlined into just eight "focused units" in the last year.

Mr McLatchie said: "The change in our divisional structure, including several closures, will result in £10m of cost savings."

The businesses to close include Flexer Sacks, Moores, PC Polythene, Bibby and Baron, and the Heanor post consumer recycling plant.