Nestle has announced it is to close a factory in Staverton near Trowbridge with the loss of 155 jobs.
The company says it is to stop making chilled desserts, which are produced in the Wiltshire factory.
It adds that the factory has been running "substantially under capacity for a number of years", and is currently running at half its capacity.
Nestle plans to close the factory by September 2004. It has entered consultation with unions.
The company shares the site with Cereal Partners UK, which says its staff will not be affected by the closure.
Trowbridge MP Dr Andrew Murrison said he was "shocked" by the decision.
"I am concerned for the 155 people that stand to lose their jobs and for the knock-on effects that the closure will have on the local economy."