Raisio is to close a snack bar plant in the UK as it relocates production to another facility.

The Finland-based company’s UK subsidiary Halo Foods is switching output from its site in Tywyn in north-west Wales to a “purposely-designed centre of excellence” further south in Newport, where the company has secured a 25-year lease.

The transfer will begin in November and around 120 staff will be affected by the move.

Halo said it had “no option” but to relocate. “We have experienced, loyal and dedicated people in Tywyn and it is very unfortunate that we can no longer retain a manufacturing operation there,” said MD Robin Williams. “There are alternative roles available for all staff at other sites and a support package will be offered to those who wish to relocate.

“Halo Foods considered a number of options relating to its manufacturing footprint, which also included the possibility of relocating its entire bar manufacturing operation to Eastern Europe. However, with assistance from the Welsh government, it has been able to secure its future in Newport.”

Williams said a “significant” investment will be made to upgrade the Newport facility.

Raisio today booked higher profits for the first half of the year, helped by an improved performance from its agribusiness arm. The company’s brands division, which includes Benecol dairy products and Honey Monster cereals, saw sales and operating profit fall.