AROUND 50 jobs in Cinderford will be lost as the BASF precious metals recycling plant is "consolidated".

The company has announced it is pulling out of the electronic scrap, gold and silver recyling business to concentrate on high value platinum group metals found in car catalytic converters.

It means that over the next six months, production at the site on the Forest Vale industrial estate will move from a two plant operation to one plant and an on-site laboratory will close down.

A BASF spokesman said: "The proposed closures would result in the loss of approximately 50 jobs at the Cinderford site. The company has entered a period of consultation with employees and is committed to providing support and assistance."

A statement by BASF describes the move as a "strategic realignment of its precious metals recycling operation in Europe."

Cinderford mayor Cllr Max Coborn said he had "no idea" about the move which he described as "a huge blow for Cinderford".

BASF says it is dedicating its full focus on the fast-growing market for rare metals such as platinum, palladium and rhodium.

David Freidinger, BASF's vice president, precious metals, recycling and refining said: "The measures we are planning will make us more responsive to market and customer needs.

"We will continue to make significant improvements to our manufacturing infrastructure for automotive catalysts recycling in Cinderford to optimize our production efficiencies and position BASF to cost-effectively meet growing demand for our high-quality precious metals products."

The company made a multi-million pound investment in the former Engelhard site in September 2011 to recycle catalysts used in motor vehicles.

BASF is one of the world's leading manufacturers of precious metal components for use in a range of industrial applications including catalysts to control exhaust emissions from cars.

The company says it is committed to growing its position in the platinum group metals recycling market and providing customers with a high-quality source of these metals for the long term.