OWNERS of the Kerry Ingredients food factory said this week it was with regret they had to make a decision to pull out of Okehampton and thanked the 106 staff for all their hard work.

The Irish-based food company confirmed that following a three-month consultation period with staff at the plant and a business review of its sweet ingredients operations the Okehampton factory would be shut down by March 2012 — with a loss of 90 jobs.

The plant at the Exeter Road Industrial Estate produces fruit fillers and other dairy and ice-cream products.

Out of a workforce of 106 Kerry Ingredients said ten had decided to take up an offer by the company to be relocated to its Tenbury Wells plant in Worcestershire.

The decision to shut down the Okehampton plant was based purely on economic reasons and was not any reflection of the quality of production at the plant or on its workforce, said the company.

Kerry Ingredients spokesman Frank Hayes said 'the size of the site at Okehampton just does not lend itself to expansion' and that, following the business review, the company would close the factory but expand its sweet ingredients interests at its Worcestershire plant.

He told the Times: 'Our employees in Okehampton have been extremely loyal and are a very good workforce, who would be an asset to any future employer.

'We regret having to make this decision but want to thank those who were being made redundant for all their work for this company and wish them every success in finding new employment.'

Jeremy Philmer-Bennett, chief executive of Devon and Cornwall Business Council, said he was disappointed with the news but that his organisation, with other local agencies, was doing its best to help those affected.

Mr Philmer-Bennett praised Kerry Foods for their co-operation in trying to do the best for their employees following their decision to close the factory.

He said: 'This is certainly not good news for Okehampton and while it was expected it is still disappointing to hear that Kerry Foods could not retain its Okehampton factory.

'We have established an Area Action Force — consisting of representatives from the DCBC and other local agencies such as Job Centre Plus, Citizen's Advice Bureau and Next Steps — working to help prepare people for redundancies.

'We are working with the company and employees to find out what people want to do next. Some people, indeed, even see this as a real opportunity to maybe go and open up a business themselves or to find further appropriate work or training.'

Mr Hayes confirmed that since September 28 the company was in the process of transferring production to Tenbury Wells and from a workforce of around 100 that 50 people would still be employed after Christmas until it closed completely in March 2012.

He added that there were some further opportunities for staff to be transferred to Worcestershire if they wanted, although he realised this would not be possible for the majority of the workers.