The closure of Oxfordshire's last maltings could lead to the creation of new jobs.

Pauls Malt shocked Wallingford by announcing that its works in the town would close in the New Year, with the loss of 21 jobs.

The announcement comes weeks after the company launched £5m expansion plans.

But councillors and business leaders said the closure of the St John's Road plant could help Wallingford attract new businesses. The maltings occupies a prime site beside the Cholsey and Wallingford Railway, and although the former branch line is no longer part of the Railtrack network, Rail-supporters said it could become a viable transport link. Town mayor Alec Hayton said more should be done to encourage new businesses to use the railway.

He said: "There is now a wonderful opportunity for railway based industries to move into the area."

Wallingford Business 2000 chairman Pat Hayward said the maltings site would be an ideal location for new hi-tech companies.

She added: "I don't like to see jobs being lost, but new companies should come in and replace them. "It is important to attract new businesses to Wallingford and the railway could provide another means of transport for businesses. Anything that helps bring new employment to the town has to be good."

Denis Strange, a town councillor and member of South Oxfordshire District Council, said the closure also presented a great opportunity to boost tourism, by allowing improvements to the Cholsey and Wallingford Railway.

The railway society has been dependent on Pauls Malt for public access and the use of station buildings.

But Cllr Strange said the changes meant the railway society could expand and improve facilities.

Story date: Friday 24 December

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.