Batchelors is to close its packaging operation in Athy, Co Kildare, with the loss of 16 jobs, and transfer the activity to a new manufacturing facility at its site in Cabra, north Dublin. Colm Keenareports.

The new facility in Dublin will produce Erin Foods products for the Irish and export markets.

The Erin brand was acquired by Batchelors in May 2007.

Batchelors said it would continue with its commitment to sourcing peas for its canning plant from farmers the Athy region. Pea farmers yesterday urged the company to postpone the plan because they had already allocated land and other resources to sowing their 2008 crop.

"The development of a new manufacturing facility, which will involve a capital investment in excess of €1 million and an expanded workforce, demonstrates Batchelors' on-going commitment to its manufacturing base in Ireland," said managing director Eugene Heary.

"While we are pleased to announce the expansion of our Dublin-based operations, we are well aware of the impact this decision will have on employees and their families in Athy. The company will begin discussions with employees and their representatives in relation to redundancy terms and will also assist them in every possible way."

Batchelors employs 270 people.