MORE job losses are on the cards in Ryedale at a firm that could be closely involved with the building of the 2012 Olympics venues – and also at two branches of a national builders’ merchants.

Business and civic leaders in the area fear the local economy could be in for more gloom and doom because of the financial recession.

The Kingspan Group, Europe’s largest insulated panel manufacturers, with sites all over the country, has confirmed that consultations are taking place with the union Unite to axe 41 jobs at its site in Sherburn, where 350 are employed. This week it warned there could be a 33 per cent drop in profits.

And last night uncertainty surrounded the future of hundreds of plumbing and building supply jobs in North and East Yorkshire after Wolseley announced plans to cut 2,000 jobs and close more than 200 branches nationally.

The firm trades under several names including Plumb Centre, Build Centre and Drain Centre, which have branches in towns and cities across the region.

The plumbing and heating merchants Plumb Centre has outlets in Pickering, Malton, York, Selby and Goole and there is also a Drain Centre and a Build Centre in York and another Build Centre in Malton.

Calls by the Gazette & Herald to local centres were referred to head office, where a spokeswoman said the firm had not yet announced which branches would be affected by the closures and job losses. She said managers would be talking to staff as part of a consultation process over coming weeks.

The Kingspan Group took over steel structure maker Wards of Sherburn 11 years ago. That firm was started in 1947 by brothers Frank and Wilf Ward.

Kingspan was involved in the construction of Wembley Football Stadium and spokesman Chris Witte confirmed that it was working with contractor partners who were “very likely” to become involved with those working on the site for the Olympics in London.

He said they were committed to staying at Sherburn. “In the medium term we are confident that our product and service offering will leave us well poised to take advantage of renewed market opportunity once the economy recovers from the downturn.”

The losses come on top of the overnight closure earlier this month of Barkers, the Pegueot dealer, in Malton with the loss of 25 jobs.

Ryedale MP John Greenway said: “This is sad and tragic for each of the families concerned but I am fearful we are going to see more generally over the next year because of the recession.”

Malton businessman Denys Townsend, chairman of Business in Action, feared it would have a knock-on effect on traders and other businesses in Ryedale.

“Everyone is worrying about the recession. Although the local economy has been less affected by national trends, whether upwards or downwards, nevertheless it is very unfortunate for those involved.”

Coun David Lloyd-Williams, mayor of Norton, where many of the workforce live, said: “People are having to brace themselves to learn the worst for the next few months at least. I hope the pundits predicting it could last two years are wrong, but that is small comfort for those out of work.”

County Coun Ronald Haigh, whose ward covers Sherburn, said: “It is very sad to see any job lost, especially in a rural area, and it is very disappointing because of all the efforts we have made to attract people and firms here.”

The job cuts at Wolseley will be phased over the next few months and are expected to reduce annual costs at the company by £80 million.

Wolseley, which operates more than 1,900 branches in the UK and Ireland, said the job cuts reflected its expectations for a further decline in trading. The company said: “Our objective remains to ensure the appropriate sizing of the cost base in line with the expected market environment.”