Closure plan for biscuit factory

Northern Foods, the maker of Fox's biscuits, has announced plans to invest £40m in a new factory, but it is closing one of its current sites.

Fox's has factories in Batley, West Yorkshire and Uttoxeter, Staffordshire, which will be combined.

Northern Foods said a new "super site" would be created either in Batley or Uttoxeter by 2011, but it had not yet decided which site would close.

Staff at the factory which is closed will be offered jobs at the new site.

A period of consultation with regional development agencies, local councils and unions has begun and a final decision will be announced in early 2009, a spokeswoman said.

'Difficult period'

The Batley factory employs 1,280 people while the Uttoxeter site has 950 staff.

Northern Foods said both factories were "relatively old" and needed "significant investment".

Fox's factory at Kirkham, Lancashire, will remain open.

Northern Foods chief executive Stefan Barden said: "We intend to invest in a state-of-the-art biscuits factory for the business, the best in the UK, specially designed to manufacture Fox's great quality biscuits efficiently.

"The resulting cost savings will ensure that even more money is available to invest in and grow the business, securing its future for yet another generation.

"We appreciate that this will be a difficult period for our loyal and hardworking employees; excitement will be mixed with apprehension and we will ensure that they are kept fully informed of any and all developments during the project."