Partners in Cheese has pulled out of plans to build a new cheese dairy at Workington, Cumbria, because an adjacent site will be used to decontaminate metal from nuclear plants.

But PiC said it was still committed to building in Cumbria and was looking at alternative sites in Carlisle and Penrith.

"We are working around the clock to secure another site in the county," said MD Ronald Akkerman. The plant won't open before 2009.