More than 20 factory workers face the axe at sailing equipment firm Musto.

Machinists at the firm's Benfleet factory have been given 30 days' notice of up to 26 redundancies.

Keith Musto, managing director of the Laindon-based firm, said the warnings were a legal requirement and did not mean job losses were inevitable.

But he warned that the survival of the firm's 120 marketing, warehouse and administrative jobs could depend on production redundancies.

He said: "During this 30-day period, we will discuss with the team what the position is and try to make sure our thinking is right.

"They may come up with some angles that we have overlooked, or may change the picture.

"At this stage, we haven't issued any redundancy notices."

Mr Musto said 26 job losses would be the "worst-case scenario" and everything possible would be done to avoid these redundancies.

But he cited competition from firms using cheap Far East manufacturing labour as a major cause of Musto's problems.

He said: "Throughout the UK and Europe, the pressure of competition is growing from Far East production.

"We have been very slow to follow in that direction, because we have had the advantage of making more technical and hi-tech products, but eventually we will have to move in that direction.

"If we want to stay alive, we have to go that way - we've got 120 other people to consider the position of, as well."

He also blamed the strong pound for worsening the position of UK firms.

Some production staff would have to remain at Benfleet to carry out repairs and development work, he added.

In recent years, Musto has become one of the top names in sailing clothing.

World-famous sailor Pete Goss, who is competing in round-the-world epic the Race later this year, worked with the firm to design lightweight, weatherproof clothing for his team.

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