Padeswood-based Castle Cement, one of the Flintshire's leading employers, has admitted that it has seen a 20 per cent downturn in its production over the past year.

This latest news reflects the continuing impact of the credit squeeze on Flintshire workers and council tax payers.

A series of the county's manufacturing firms have cut jobs and production this year, and the turmoil on the financial markets has hit building and housing companies.

Flintshire-based housebuilder Redrow has warned that the mortgage market won't recover for another two years, having axed staff in recent months.

David McLean said in May it too would be cutting jobs. Meanwhile, Flintshire Council has confirmed it has £3.7 million invested in failed Icelandic bank Landsbanki.

Now Castle Cemenet, which has been the centre of some controversy over the years, amid fears from residents about the impact its Padeswood factory could have on the environment, revealed that it is currently reviewing its cement distribution fleet and the jobs of distribution workers are "at risk."

A spokesman said: "There is a drastic economic downturn, which is affecting everyone, and we are feeling the pain as much as any other business.

"House building has practically ground to a halt and so has a lot of infrastructure development work, and as a result the demand for cement has fallen."

The company was forced to close a kiln at its Ketton factory in the East Midlands, due to a downturn in production, but such drastic measures have not yet been taken at the Flintshire site, which employs about 250 people.

The spokesman added: "The Padeswood kilns run 24 hours a day, but obviously there has been a drop in terms of delivery, because we have to match production rates with demand.

"New building work is not being started and house building is at its lowest since the Second World War, and we are certainly victims of the credit crunch.

"Fortunately, we have not had to resort to closing kilns at Padeswood, but we are having to review our distribution fleet.

"A 20 per cent downturn in production means that 20 per cent of our wagons are sitting doing nothing, and as a result the jobs of distribution workers and other allied functions are at risk."

Alyn and Deeside AM Carl Sargeant said: "The global financial downturn has had a significant effect on the construction industry.

"I will be looking very closely on how this will impact on employment in North East Wales and Flintshire, and I will be seeking a meeting with trade unions and businesses, to outline my concerns and listen to the issues they are facing."

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