BSW has announced it is considering closing its loss-making Senghenydd sawmill and has entered into a 30-day consultation period with staff.

The company, the UK’s largest sawmiller, said other options included further restructuring, short time working and extended layoffs.

BSW Timber chief executive Tony Hackney said action was needed due to current challenging economic conditions.

Existing cutbacks at Senghenydd, which specialises in fencing timber, included a reduction in output, overtime and temporary staff.

“The timber trade continues to be depressed with doubtful prospects for recovery in the construction and fencing market on which we depend,” Mr Hackney told staff in a company notice.

BSW Timber is reviewing all its mill operations across the UK.