A YORK packaging factory - where wrappers for top chocs such as Kitkat are made for Nestl - is to close with the loss of 76 jobs.

Lawson Mardon plans to shut its plant at Clifton Moor by the end of June, blaming the decision on a static UK market where capacity outstrips demand, coupled with the strong pound and weak euro.

The announcement is York's second employment blow in three days, with a question mark hanging over 88 jobs at York Gas, which is closing in June.

Lawson Mardon wants to focus production at its two other factories in Cumbria and Bath, and says between ten and 15 York employees may be able to transfer if they wish.

Staff were given the bad news at a mass meeting on the site in Kettlestring Lane yesterday, and then allowed to go home for the rest of the day.

One employee told the Evening Press: "We knew something was up. We have known a meeting was to take place for about three weeks, but it's still a shock."

Managing director Michael Cronin said the company very much regretted the impact on employees. "We are making every effort to ensure that our staff are treated in a fair and appropriate manner, and full consultation will commence within the next few days."

Charles Starkey, father of chapel (shop steward) for the GPMU print union at the factory, said today the union would be pressuring the company to reverse the decision.

He said workers felt there had been insufficient investment in the site.

The £20 million factory at Clifton Moor opened in 1990 to take over the printing and packaging of Rowntree products after the confectioner closed its own in-house packaging division.

Many of the new plant's workforce were re-employed from Rowntree.

In recent years, the factory has also been making "flexible packaging" for a range of other food producers including Birds Eye and Burtons.

Nestl said last night: "It's always sad when a factory closes, especially when it's one in your community and a supplier. We will be discussing with Lawson Mardon how they plan to continue looking after our business."

Vale of York MP Anne McIntosh said of the announcement: "It's very disappointing. It's a highly- regarded and well-respected company."

York MP Hugh Bayley called on the company to talk to organisations such as City of York Council before making a final decision.

Updated: 13:17 Saturday, April 07, 2001