Cadbury Trebor Bassett has announced plans to close its chocolate factory at Keynsham in Bristol, with the potential loss of hundreds of jobs.
In a statement today the confectioner said that it was proposing a phased closure of the plant between 2009 and 2010, in a move which will affect all 500 employees employed there.
Cadbury says the planned move is part of a restructuring programme designed to achieve greater supply chain efficiencies and cut costs.
Under the plans chocolate production at the Keynsham site will move to both Cadbury's main Bournville factory and a sister factory in Poland.
Cadbury insists that it remains committed to manufacturing in the UK and as such is investing an additional £40 million to improve operations at Bournville.
The company claims that the investment will enhance the factory's status as "a centre of excellence for chocolate production" and help achieve efficiencies within the production process for chocolate assortments.
However Cadbury has warned that around 200 jobs could also be lost at Bournville between 2008 and 2010, with some chocolate assortment production set to move to Poland in the longer term.
Company bosses say they hope any phased redundancies can be achieved voluntarily.
Cadbury managing director Trevor Bond said: "Cadbury is a great British company which has become an international success. In order to continue to compete in the extremely competitive confectionery industry in the future we need to make the right decisions today.
"Whilst the proposed closure of our Keynsham factory will be difficult for those affected our ongoing commitment to manufacturing in the UK is absolute.
"Our significant investment in Bournville is a testament to that," he stressed.
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