Potato processor McCain Foods plans to cut half the workforce at its Wombourne site in Staffordshire because of environmental problems caused by its French fries production line. It will now focus on speciality products, with French fry production moving to another site.
The company, which employs 240 staff at Wombourne, said it had invested millions of pounds in reducing fumes and noise as well as addressing water discharge and traffic problems, but the issues had proved insurmountable.
"This has been a difficult decision and is no reflection on the highly valued work performed by employees in Wombourne," said Nick Vermont, McCain's regional chief executive officer.
"McCain will ensure employees receive above statutory severance terms and assist in identifying alternative employment. McCain remains absolutely committed to Wombourne and will continue to play a role in the community."