AN ERA came to an end yesterday with the announcement that one of the most famous chocolate companies in the country is to close.

Terry's of York, which can trace its history back almost 250 years, is to shut down with the loss of all 316 full-time staff and a further 150 seasonal jobs.

Production of household names such as All Gold, Chocolate Orange and Twilight is to be transferred to more cost-effective plants in Sweden, Belgium, Poland and Slovakia.

The future of the factory itself, in a dominating position overlooking York Racecourse, has yet to be decided.

News of the closure, which is expected to take place in the latter half of next year, was broken to staff yesterday morning.

It follows the loss of about 370 jobs announced since last August at rival York confectioner Nestle.

Officials from the GMB union, who were meeting management yesterday, described the news as "devastating for York and for the workforce".

Terry's is owned by the Kraft Foods group, which is carrying out a global restructuring programme in an effort to fund future growth.

John Pollock, director of the York plant, said: "It is a very difficult time for us all.

"In this situation it is important that we focus on our people and ensure that everyone is treated fair.

"As well as providing as much advance notice as possible, we will be supporting employees with appropriate settlement packages and offering assistance in their search for alternative employment."

York's chief executive, David Atkinson, said the announcement was terrible news for the chocolate industry in the city

He said: "Terry's association with York goes back over two centuries and its name is synonymous with chocolate making in the city. This is a sad day for York and all those employed at the site."

Local Labour MP Hugh Bayley said Terry's brands were associated with York and brand loyalty could be undermined if they went abroad.

"I want the company to consult seriously with the unions and staff about saving jobs and keeping Terry's of York in York," he said.

Kraft Foods claims the size and configuration of the York site has led to a cost structure that is no longer sustainable.

"We have no choice but to continue improving our cost structure if we are to be able to invest in growing our brands," said Mr Pollock.

"The York employees have made terrific efforts over many years to improve efficiencies, but given a combination of factors it has not been possible to preserve the plant."