Workers at the factory that made Highland Toffee have had hopes of getting their jobs back dashed after new brand owner Tangerine Confectionery confirmed there were no plans to resume production of the 80-year-old brand at the Scottish site.

Tangerine's decision means the quintessential Scottish brand will no longer be made in Scotland and has put an end to speculation that the site's 103 workers, who were made redundant after New McCowans fell into administration last month, might be reinstated.

Tangerine said it was still finalising its plans for Highland Toffee and Wham bars - which it also snapped up from New McCowans - but that it would move production south of the border where it operates seven English sweet factories.

The sweets are likely to be made in York, where Tangerine is installing kit from Stenhousemuir, and Blackpool, where it already produces chew bars such as Fruit Salads. It said it intended to invest in both brands to give them a new lease of life. "They're both brands that lost their way somewhat," said marketing director Alison Lewis. "We want to do new things with the brands."

Tangerine, which was bought by private equity group Blackstone in July, has a track record of turning around sweet brands. It has grown sales fourfold since 2006 to £160m by buying struggling companies and building on the retro appeal of brands such as Barratt and Taveners.