Agribusiness and food ingredients group Glanbia intends to close a cheese manufacturing facility with the loss of 45 mainly seasonal jobs.

The company announced yesterday that it intends to end the production of cheddar cheese at its Kilmeaden facility in Co Waterford when it closes at the end of the month.

The plant operates on a seasonal basis from March to the end of September. The group's decision means that it will not re-start producing cheddar in 2006.

Kilmeaden employs 45 people, 41 of them seasonally. Glanbia says it will negotiate their redundancy terms on the basis of the severance deal it has had with its workers since 1998.

The company blamed increasing cost pressures on dairy production for the decision. Speculation had been growing in recent months that it would close the facility.

John Bergin, chief executive of Glanbia's food ingredients division, said that the group would split the 14,000 tonnes manufactured at the plant between its own Ballyragget plant in Co Kilkenny and Dairygold Co-op's facility in Mitchelstown, Co Cork.

Glanbia is already manufacturing butter under contract for Dairygold at Ballyragget. Last year both agreed that Dairygold would carry out some milk processing operations for Glanbia.

However, Mr Bergin signalled that the company was seeking alternative uses for the Kilmeaden factory. "Glanbia is to retain the Kilmeaden facility and we will continue to explore alternative specialist cheese production options," he said.

Over 12,000 tonnes of total production from the plant was non-branded cheese for export, while the remainder was used in Glanbia's Kilmeaden brand.

Glanbia is also in the process of closing a yoghurt plant in Co Waterford.