Arkady Craigmillar, a supplier of bakery ingredients and frozen products, has announced that production of its confectionery mixes is to be moved to its Manchester factory from a Unilever-owned facility in Suffolk.

The transfer signals the end of the transitional arrangements which have been in operation since CSM's acquisition of Arkady Craigmillar from Unilever in October 2000.

The company is investing £4m (US$) to modernise the Skerton Road site in Old Trafford and increase capacity to start additional production next year. The development consolidates all Arkady Craigmillar's dry mix expertise in one facility, offering commercial benefits and improved service levels for customers.

MD Steve Moon commented: "We have been producing bread improvers and other ingredients at Skerton Road for over 70 years, and this investment will increase production by over 60%. Manufacture of confectionery mixes will commence in September 2003. All products will be produced using the latest equipment and technology, which is to be installed over the next 12 months."

The announcement safeguards the jobs of all Arkady Craigmillar's current employees in Manchester and will increase production to 24 hours a day, five days a week.