A marshmallow factory in south Wales has been awarded a �1.25m grant to boost production and secure 240 jobs.

OP Chocolates based in Dowlais, Merthyr Tydfil, was awarded the money from the Welsh Development Agency (WDA) to buy new machinery to manufacture larger quantities of marshmallows.

It is super news for the business and for the area

Bruce Tomlinson, OP Chocolates MD

The cash was needed to enable the company to cope with the rising sales demand of its confectionery.

The firm is a leading supplier of marshmallow goods in the UK, and is one of the main employers in the unemployment blackspot.

It is famous for its products like Snowballs - a coconut flaked marshmallow.

Sales rose by more than 30% last year and are continuing to increase.

The WDA gave a process and marketing grant to be used to install new equipment at the factory in Dowlais.

Sales of marshmallow goods have risen

The cash has allowed bosses at the factory to replace old machinery with new equipment which will increase production.

Managing Director Bruce Tomlinson said: "It is super news for the business and for the area because we are one of the main employers.

"It means we can replace equipment that we have been using for nearly 40 years.

"Mallow products are a growing line and this is a key sector for us.

"I am hopeful that with this money we will also be able to develop in the future," he said.

Major supplier

Mr Tomlinson said there were hopes the business would be able to increase its workforce.

"We have 240 core workers and we also employ many seasonal workers," he said.

"At the moment we have an additional 160 seasonal staff.

"I hope that it will be possible to expand our core staff in the future."

OP Chocolates was set up in 1938 by Oscar Peschek, an Austrian baker.

Production began at a site in Treforest, transferring to Merthyr Tydfil in 1946 and its current factory in Dowlais in 1963.

It is one of the major suppliers of wafer and chocolate products in supermarkets.