More than 160 workers are losing their jobs after layoffs at several factories owned by food giant Nestl�.

About 120 workers who make canned milk products at a plant in Ashbourne, Derbyshire were told on Thursday that the plant will close.

Production is scheduled stop next June, when the output will be split between an outside contractor and a Nestl� plant in the Netherlands.

Another 24 jobs will go at Dalston in Cumbria and at least 20 more jobs at Girvan in Scotland.

Condensed milk

West Derbyshire Conservative MP Patrick McLoughlin says it is a major blow to the local economy.

Nestl� will expand production at its Dalston factory, making more popular items such as Cappuccino and coffee creamer Coffee Mate.

But despite a proposed �2.5m investment in Dalston, it will see 24 job losses because of falling demand for sweetened condensed milk.

Nestl� is the world's largest food maker

Nestl� is ending its milk supply arrangements with 460 UK farmers, but the co-operative First Milk will take over those contracts from April.

First Milk, which is owned by its 4,000-plus dairy farmer members, will then use the supplies to provide Nestl� and other customers.

Swiss-based Nestl�, the world's biggest food company, produces instant coffee, Perrier water and chocolate.

In February 2002, it reported net profits of 6.7bn Swiss francs (�2.8bn), a 16% rise over the previous year.