Jobs are at risk at a council-owned glazing and door company which could be closed down.
Wakefield Council’s cabinet will discuss the future of Metroglaze, which is based in Normanton and employs 20 people, at a meeting on Tuesday.
Staff could be made redundant at the Altofts Road company, which was set up in 1985 to make windows and doors for the district’s council houses and schools.
Its main customer is Wakefield and District Housing (WDH), but council bosses said demand for its products had fallen.
Graham Stokes, Wakefield Council’s cabinet member for corporate performance, said: “We are in a tough economic climate, so we now need to look at the future of the service and to consider closure.”
Councillors will consider a recommendation to close Metroglaze and start a process of staff redundancy or redeployment.
An other option is to cease manufacturing but keep it going as a supply and installation service as part of the council’s building services department.
Wakefield Council said the second option would only continue while it was financially viable.
A report to Tuesday’s meeting said the company’s annual income was £4.5m at its height, but this fell after other glazing providers come into the market.
A rapid decline started in April 2013 after a contract to supply 17,000 windows to WDH ended.
The report added: “Metroglaze made a loss of £703,000 in 2013/14 and is estimated to make a loss of circa £610,000 in 2014/15, despite implementation of cost reductions.”