Dairygold says the industry has 'significant over-capacity'

Dairygold told 115 staff at the factory at Felinfach, near Lampeter, on Monday that it will shut by mid April.

The plant, on the Aeron Valley industrial park, will switch its packaging to a plant in Staffordshire.

The Irish-owned company, which set up in Felinfach with a �1.2m grant of public money in 2001, blamed the "harsh realities of the marketplace".

The decision follows a review of operations, including 90 days of consultation with staff.

Donal McCarthy, head of the company's consumer foods division, said the plant was "no longer viable" in an industry with "significant over-capacity".

The reality is that we have lost significant money in our business here in Wales, so it's not that we are taking the money and running Donal McCarthy, Dairygold

He said Dairygold had made "huge efforts" to try to save the plant, and its closure "in no way reflects on the staff and the management here in Felinfach".

He added: "They have been very good to Dairygold and we are very proud of them; however we have to deal with the harsh realities of the marketplace.

"The reality is that we have lost significant money in our business here in Wales, so it's not that we are taking the money and running."

On the future of the building, he said the company was in discussions "about possible opportunities for further employment here. We will do everything we can to ensure that there's the maximum number of jobs secured here."

Ceredigion MP Mark Williams said it was a devastating blow to staff who " have pulled out all the stops for the benefit of the plant".

"At the start of the consultation period Dairygold told me that they would attempt to increase capacity, sell the plant as a going concern, or sell the site," he said.

It's a huge personal setback for those involved, and a major social and economic setback for the region Mark Williams MP

"Dairygold must now be held to account on that third pledge.

"One hundred and fifteen job losses in Felinfach will have a huge impact on a rural area such as the Aeron valley. It's a huge personal setback for those involved, and a major social and economic setback for the region.

"There's also the issue of public money. Public money brings public responsibility.

"Dairygold have a responsibility to the community that has served them so well. Public funds have been used to enhance Dairygold's work at the plant and I think there's a strong case for this money to be paid back."

Plant manager John Thomas said: "It's a very sad day but at least now we know where we are.

"It's the worst outcome but at least we haven't been fobbed (off), we've got the truth."