WORKERS at a North-East crisp factory have been told it is to close later this year with the loss of 355 jobs.

The owners of the Walkers snack plant at Peterlee, County Durham, have informed staff it is to cease production permanently.

In March, PepsiCo said it was consulting to help it make “productivity and efficiency savings”.

But earlier on Tuesday a spokeswoman confirmed production would be moved to the company’s other UK sites by December.

She said 355 workers had been informed and those affected would be offered support.

Tracey Foster, Peterlee manufacturing director at PepsiCo UK, said: “We appreciate that this is very difficult news for everyone at the Peterlee site.

“We would like to emphasise that this decision in no way reflects the performance of our colleagues at Peterlee and we remain very grateful for their hard work and commitment.

“Efficiency savings are crucial for ensuring the long-term sustainable growth of our business in the UK.”

The company is still consulting with its subsidiary firm PRDC Transport about 23 additional posts associated with the factory.

Ms Foster said: “Our priority now is supporting and providing assistance to our colleagues who are impacted by this decision as we move into the process of consulting with employees on an individual basis about what this means for them personally.

“Peterlee has been an important site for our business but the proposal presents significant productivity and efficiency savings crucial for ensuring the long-term sustainable growth of our business in the UK.”

Michael Hunt from the GMB Union said all workers attended a meeting at Hardwick Hall in Sedgefield at 10am on Tuesday morning regarding the Peterlee factory.

He said: “I am afraid to say that despite numerous representations and counter proposals, the company today announced that the intend to go ahead with the proposal to close the Peterlee site on the December 31, 2017, previously citing efficiency reasons for doing so during formal consultation with GMB.

“Of course this is devastating news for our members, their families and the local community as a whole.”