Raisio, the Finland-based food group, has decided to close its breakfast cereal and snack bar factory in west London, a move the Honey Monster owner said would make the company more competitive.

Production will end in the first quarter of next year. Some of the output will be outsourced, while Raisio will centralise its production of snack bars at its plant in the Welsh town of Newport. Some 99 staff at the Southall site will lose their jobs.

“Remodelling of the business is necessary to ensure future success of the UK cereal and snack business. The new operating model improves Raisio’s competitiveness in both local and international markets,” Tomi Järvenpää, the vice president of Raisio’s snack and cereal unit, said.

The announcement on Friday follows Raisio’s admission in October it was weighing up alternatives for the Southall factory that included a possible closure.

Raisio has booked write-downs of EUR4.5m (US$4.9m) and costs of EUR7m from the closure of the Southall site. It said it was “assessing alternatives” for the property.