Unilever UK Foods is to close its Elmlea factory in Needham Market, Suffolk, with the loss of 66 jobs.
Production will be transferred to the Purfleet site in Essex over the next 18 months, where 30 new jobs are to be created.
The Purfleet factory, which employs just under 300 staff, manufactures spreads, including Flora, Flora Pro-activ and I Can’t Believe It’s Not Butter!.
Unilever UK Foods said moving production to Purfleet would help to support future growth of Elmlea sales, which stand at £20m. It added that the move was in response to the significant growth of the cream alternative category in the UK.
The company does not intend to close the Needham Market factory until the second half of 2006 and said it had assured staff that they would not be made redundant for at least 12 months following the announcement.