A recycling plant in Kirkcaldy looks set to close, putting around a dozen or so jobs under threat.
Saica Natur, at Mitchelson Industrial Estate, is proposing to close at the end of March.
The site handles paper, cardboard, polythene films, plastics, metals and glass.
The lease on the site ends this year, and it is understood the firm is struggling to find an alternative site in Kirkcaldy, and that they could move to Edinburgh.
In a statement, Johan Sundblad, Country Manager of Saica Natur UK, said: “Market challenges – including reduced supply, increased costs and fluctuating international markets – have forced us to revaluate our current set up in Scotland.
“We are looking at different options, one being a new suitable location in the Edinburgh area, whilst at the same time exploring possibilities to concentrate and consolidate existing depots.
“As our first choice we are looking at alternative nearby sites, and in the meantime we are also investigating all options – internally and externally – to find solutions for all staff involved should we be forced to cease our operations altogether in Kirkcaldy.”
Fife Council is among the plant’s clients.
Robin Baird, the council’s resource solutions Chief Operating Officer, said: “ While it is sad to see any local employer reducing it’s operations, the closure of this facility will not impact our recycling in Fife.
“Saica have other facilities and we can continue to work with them and other operators to continue to recycle all paper and card.”