Sonae Industria (UK) Ltd has reached an impasse with local authorities over its plans to add new equipment considered vital for the economic future of the Knowsley factory.

Nigel Graham, managing director, said the company was focused on engaging with the planning authority to move forward licensing plans to install new cleaning equipment for recycled wood raw material.

Mr Graham told TTJ that it was concerning that it had reached a stalemate with planners after spending £35m on rebuilding works since the major fire last June.

“The fact we are not getting any positive indications at a local level is of great concern. There is clearly a planning application process and there is a defined process that we have to undertake to get approval.”

But he said planners were not giving any steer on the likelihood of success.

“We have to try and engage at a local level. I believe there is a constructive onus on both sides to engage together.

“It is not economically viable for us to operate in the interim position we find ourselves. We could do it for a while but not in the medium or long term.

“A clear implication is that if we can’t get a resolution, we will have to consider our options which could include restructuring our business to make it viable going forward.”

Mr Graham said Sonae would not comment on any speculation as to what the company may decide to do in the future.