A HISTORIC steelworks firm could be set to close after nearly 250 years operating in Warrington.

Peter Stubs Ltd was first founded in the town in 1777 as a tool manufacturers, and is still based in an industrial unit off Wilderspool Causeway.

Now named Erasteel Stubs after being acquired by the eponymous French multinational in 2001, it is facing an uncertain future following the ‘loss of a key customer’.

Erasteel has confirmed that redundancies will be made after this blow reduced turnover by 70 per cent and cited the coronavirus pandemic as having an impact on the business.

Closure of the site ‘is possible’, with consultations underway.

It is understood that around 80 staff are employed at the Causeway Park works.

An Erasteel spokesman told the Warrington Guardian: “Earlier this month, Erasteel Stubs Ltd informed staff at its Warrington site of proposals to make redundancies.

“Erasteel Stubs regrets the loss of a key customer, and the likely consequential loss of approximately 70 per cent of the company’s turnover.

“This substantial loss comes at a time when the Erasteel company is experiencing the impact of the Covid-19 pandemic and deterioration in its global markets.

“The broader global context will make it difficult for us to find alternative solutions in the short or medium term.

“Given the economic and commercial situation of the plant, closure is possible.

“Collective redundancies and potential closure of the plant are currently the subject of a formal collective consultation process with Erasteel Stubs’ employees.

“Accordingly, it is not appropriate for us to comment further at this time.”

Based on Bridge Street in the town centre in its early days, Peter Stubs Ltd moved to a large site on Scotland Road in 1802.

During the 1800s, it became a ‘major world manufacturer’ of silver steel.

More recently, the company unveiled a £2million extension to its current home back in 2012.