179 job losses at sauce factories

G Costa said 151 workers at Abercarn, Caerphilly and 28 at Newtown in Powys would be affected next year.

The firm said it had to secure its long term future by moving to a lower cost manufacturing operation.

It recently took on work to produce Reggae Reggae Sauce, which was featured in the BBC's Dragon's Den programme.

The idea came from chef and entrepreneur Levi Roots, based on his grandmother's recipe.

He said he wanted production of his sauce to continue in the UK.

G Costa managing director Andrew Mayhew said: "Proposals of this sort are never easy".

'Effort'

The company, which is part of the giant Associated British Foods group, said it was proposed that both factories would close in spring 2008.

A 90-day period of consultation is underway with workers.

Mr Mayhew added: "It in no way reflects the commitment and effort of our teams at both sites.

"However, the reality is that we can only sustain our business in the longer term by moving to a lower cost manufacturing operation with more flexibility to make a wider range of products than our current factories will allow."

He said the company intended to do "everything possible" to minimise the impact on workers.

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