Check out the just-food blog for our thoughts on Cadbury's move

The axe is to fall on one of Cadbury Schweppes' production sites in the UK as the confectionery giant presses on with the restructuring of its worldwide operations.

Cadbury said this morning (3 October) that it plans to close its Keynsham chocolate factory by 2010, a move that will affect 500 employees.

The company also plans to shift some of its production of chocolate assortments from its flagship Bournville site to Poland, a decision that will see 200 workers lose their jobs.

Nevertheless, Cadbury said the restructuring would see the Bournville facility get some GBP40m of investment as chocolate production switches from Keynsham to the Midlands site.

"In order to continue to compete in the extremely competitive confectionery industry in the future we need to make the right decisions today," said Trevor Bond, MD of Cadbury Trebor Bassett.

"Whilst the proposed closure of our Keynsham factory will be difficult for those affected our ongoing commitment to manufacturing in the UK is absolute. Our significant investment in Bournville is a testament to that."

Cadbury said it has started a consultation process with employees. The company plans to close the Keynsham site in phases with a full closure slated for 2010.