NESTLE is set to sell its UK ice cream business, which employs 80 people in York.

The confectionery giant announced this afternoon that it has entered into discussions with Richmond Frozen Confectionery Limited, based at Leeming Bar.

Under the deal, the ice cream business's 230 employees many based at Nestle's ice cream factory at Telford would be transferred to Richmond.

It has indicated that it will be examining various options which may result in substantial redundancies.

However, a Nestle spokesman said some of the York employees, who work in sales, marketing and administration, may find work at Richmond's HQ at Leeming, while some others may be found work within Nestle's confectionery business at York.

Big name brands such as KitKat ice cream and Fruit-pastil lolly would continue to be made under the sale, but possibly at one of Richmond's factories.

Updated: 15:02 Thursday, August 16, 2001