AG Barr is planning to close its factory in Wales and move production to its new Milton Keynes facility.

The Scottish company, which makes Irn-Bru and Rubicon, said it would close the site in Tredegar, which produces drinks cartons mainly for its Rubicon and KA juice brands, at the end of January 2015, subject to staff consultation. The site employs 67 people.

Production of cartons would move to Milton Keynes as part of a £4m investment, it said.

It added that the new high-speed carton production facilities would cater for current demand and provide “future capacity and flexibility”. A total of 27 new jobs will be created at Milton Keynes. Where possible, employees at Tredegar would be given the opportunity to transfer to other sites, it added.

The move was welcomed by analysts, who said it would allow AG Barr to be more flexible and faster. “This will result in increased flexibility and reduced transport costs for raw materials and finished products,” said Investec analyst Nicola Mallard. “There remains ample headroom at Milton Keynes for future capacity expansion in other packaging formats.”

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