THE American owners of Terry's were urged today to think again about their decision to close the York chocolate factory.

Union leader John Kirk said he wanted to put forward a survival plan to Kraft Foods to keep Terry's in the York area.

The GMB organiser said he was proposing that the workforce should move to a new, purpose-built factory in York, following the sale of the old factory in Bishopthorpe Road.

He said moving abroad was not the best option. "We have got the expertise on this site," he said.

York MP Hugh Bayley has already called on the company to talk seriously with its staff and unions about saving jobs and keeping Terry's of York in the city.

Council leader Steve Galloway said that if there was any possibility of persuading Terry's to stay in York, either at the existing site or another one within the region, the council would do all it could to achieve that end.

"We are interested in talking to the management of Terry's," he said

He said it would not be easy to find an alternative manufacturing site within the city because of green belt and other restrictions, but sites could be found more easily further away but still within commuting distance of York workers.

He said an urgent report on the Terry's announcement would be presented to a meeting of the council's executive this afternoon, when councillors would discuss the way forward.

Terry's has confirmed that in recent years it has considered selling off the factory site and moving to new purpose-built premises in the York area, but rejected the idea.

The Evening Press reveals tonight that experts believe the site could be worth more than £50 million if it is freed up for residential redevelopment.

The location, overlooking York Racecourse and close to the A64, is expected to be of great interest to all major developers.

A company spokeswoman said today that it would be talking openly and transparently with unions, and also with local MPs and the local authority, about its proposals.

She said it would be explaining the thinking behind the decision to close down the site and move production abroad, with All Gold going to Sweden and Chocolate Orange to Poland.

Updated: 10:48 Tuesday, April 20, 2004