THE biggest manufacturing plant in Oban is in danger of closing, with

the loss of 83 jobs.

The news was given to workers at Kelco International's alginate

processing plant at Barcaldine, Oban, on Friday. Plant manager Hugh

McLean will meet union representatives tomorrow.

Ironically, the Barcaldine staff are working round the clock seven

days a week to meet orders. The issue is being examined on the best cost

cutting solution for the company as a whole, not on the successes of

individual plants.

Mr McLean said yesterday: ''Kelco International's 83 employees at

Barcaldine were informed on Friday that a review of the company's algin

operations is under way, which may result in the plant's closure.

''Whilst no decisions have been taken, and indeed are some months off,

our employees, who are regularly kept informed of business activities,

should know that the review process is under way.''

Algin is obtained from seaweed and used in a wide range of food and

other products.

Mr Kenny Cooper, secretary of the General, Municipal and Boilermakers'

union, said: ''There is a very big concern. The fear is there, a

terrible fear. I am deeply concerned about our union members, and I have

got union people coming up on Tuesday.''

Mr Cooper said he hoped the quality of the production at Barcaldine

would prove the factory's saving grace. ''The more unique we become, the

better our chances of survival.''

Argyll and Bute District Councillor Campbell Cameron said: ''This

would be a big jobs blow to an area like Oban. It is not simply 83 jobs

-- it's 83 families involved and 83 less people shopping.''