Cadbury Trebor Bassett is to close its factory in Keynsham, Somerset, affecting 500 jobs.

The factory will shut down as part of a phased closure between 2009 and 2010 “to achieve greater supply chain efficiencies”, the confectionery giant said.

Production would be transferred to Poland and to its Bournville site which will receive an additional £40m investment.

However, some chocolate assortment production would be transferred from Bournville to Poland in 2008, affecting 200 jobs.

“In order to continue to compete in the extremely competitive confectionery industry in the future we need to make the right decisions today,” said Cadbury Trebor Bassett MD Trevor Bond.

“While the proposed closure of our Keynsham factory will be difficult for those affected, our ongoing commitment to manufacturing in the UK is absolute.”