A FROZEN confectionery firm with a factory at Leeming Bar has begun talks to buy the UK ice cream business of Nestle.

Formal consultations are under way with employees of Nestle about a possible deal with Richmond Foods, which will have the biggest ice cream factory in Europe when a £4m extension is completed on Leeming Bar industrial estate.

If the deal is successfully concluded it will give Richmond Foods the right to manufacture, import, distribute and sell the Nestle ice cream range in the UK.

A spokesman for Nestle said that, in the event of redundancies, the firm would work with Richmond to provide a strong level of support for employees.

Redundancies are feared among the 230 Nestle staff split between the manufacturing operation in Telford, Shropshire, and the sales, marketing and administration centre in York, where 84 people work.

A spokesman for the Transport and General Workers' Union said: "We have members at Nestle in York and will be seeking urgent clarification of the situation there."

Mr Graham Miller, Nestle group finance director, said: "We have all tried hard for nine years to develop our ice cream business but have not been able to make it big enough to compete in a difficult and competitive market place.

"We are seeking a solution that preserves the hard work that has gone into building our brands. Combining with Richmond should create a large enough business to compete effectively.

"Richmond has considerable expertise and will give our brands the best chance to continue their development."

A spokesman for Richmond Foods said that at this stage the company had nothing to add to its brief Stock Exchange statement about the talks on Thursday last week, but a further announcement would be made in due course.

l See our Wise Speke market round-up on this page.