Global household products giant Unilever is set to close an historic North West plant where Persil and Surf laundry detergents are made, after what it called an "irreversible decline in demand for washing powder".
The British-Dutch firm said it was launching a "strategic review" into the 136-year-old factory in Warrington that employs more than 100 people but is currently "running at less than half its capacity".
The statement from the firm, whose brands include Dove and Lynx, said one potential outcome would be to close the entire plant, and that it would be "challenging" to find a commercially sustainable alternative.
Unilever said: "[We] appreciate that this is difficult and unsettling news for the 123 employees at Warrington and will support them through this review."
Jon Strachan, vice president of supply chain, added: "This decision has not been taken lightly.
"Whatever the outcome, the review is likely to require difficult decisions. We understand this will cause considerable concern for our Warrington employees, suppliers and the local community and that the outcome may have significant implications for them.
"We are committed to treating our employees fairly throughout and providing support during this period of uncertainty."
It follows the at its Port Sunlight factory and research facility in Wirral.
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Following the announcement, GMB, the union for Unilever workers, together with Warrington North MP Charlotte Nichols, have called on the company to save the historic factory.
They said they would fight "tooth and nail" to protect every job.
Eamon O'Hearn, national officer at GMB, said: "GMB is extremely saddened at the news that Unilever Warrington, a seminal location in British manufacturing history, could potentially close, less than 12 months after Colman's in Norwich.
"The site has been operating for 136 years and has a proud record and history, and GMB would obviously want to see a positive result for the workforce from the proposed review.
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"Our members are 100% committed to finding alternatives to potential closures and will be working closely with the company experts to explore all options."
Charlotte Nichols, MP for Warrington North, said: “Unilever’s announcement is of great concern to my constituents in who work at the Crosfields site in Warrington.
“I commit to standing up for my constituents affected by the proposals and I am working with the GMB union to try and secure the future of the workforce there.”
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The statement by Unilever said that in recent years, there had been a "sustained and irreversible decline" in demand for washing powder, as consumers switch to other types of laundry product, particularly liquids and laundry capsules. That meant market volumes falling by 15%.
The firm today announced a review into its PG Tips and Lipton brands after profits slumped.
The firm's statement released last week added: "This trend is set to continue, with demand for washing powders expected to decline by a further 10% every year for the next few years.
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"As a direct result of this structural shift in the market, the Warrington factory is now running at less than half its capacity.
"This has a significant impact on the site’s competitiveness."
It said Unilever had made "considerable efforts" to address the site’s challenges in recent years, but that the efforts had not been enough "to offset the sustained shift in consumer behaviour".
The review will last for four weeks.