THE owner of SCA Packaging last night warned that its UK workforce could bear the brunt of a restructuring that will cost 3,600 jobs across Europe.

Swedish company Svenska Cellulose employs 7,000 staff across the UK - including hundreds at its SCA Packaging plant in Faverdale, Darlington.

A spokesman said last night that it had not decided where the redundancies would be.

Svenska, the maker of Velvet toilet tissue, is trying to cut costs after being affected by tough market conditions.

The news follows another cost-saving programme implemented last year that led to 1,200 job cuts.

Jackie Woodall, of trade union the GMB, said last night that 45 jobs lost last year at SCA's Darlington plant were replaced by agency staff. The site is believed to employ about 200 people and is one of the packaging operation's largest UK sites.

Ms Woodall said she had not been informed of any new job losses.

A spokesman said the group could not say how many jobs would go in the UK, but that it would be among the worst-hit countries. He said the company was negotiating with unions.

About 400 jobs will be lost in Sweden, with the remainder at its European packaging and hygiene plants.

Svenska also has a forest products division that makes the pulp used in products such as nappies and incontinence pads.

Only three of its UK sites are involved in forest products, with the remainder in packaging and hygiene.

The cuts are part of a drive to phase out seven per cent of its tissue production and 17 per cent of its cardboard liner capacity.