Insider Media Limited

Nestlé is planning on investing a further £200m in its Nescafé factory in Tutbury, creating another 125 jobs on top of the 300 announced in November. The next stage in the development of the Nescafé Dolce Gusto facility follows the £110m extension already revealed last year.

Once the expansion of the site is complete in 2014, the food giant will close its factory in Hayes in Middlesex.

The restructuring will bring all of its coffee production on to a single site.

It is "not feasible" to redevelop the Hayes site to create the manufacturing facility Nestlé needs for the future, the food giant said.

The company's 230 employees at Hayes have been notified and a full consultation will now take place.

Paul Grimwood, chairman and chief executive of Nestlé UK & Ireland, said: "Over the next three years, we are investing £500m to establish our next generation of world-class manufacturing facilities in the UK. The proposed restructuring announced today, which will bring all our coffee manufacturing together at Tutbury, is a key part of this overall investment programme.

"Our employees at Hayes make an outstanding contribution to our Nescafé business, and the factory will continue to play a vital role through to 2014. We are creating more than 400 coffee manufacturing jobs at Tutbury and we will therefore have alternative jobs to offer our 230 employees in Hayes."

The Tutbury plant will house 12 new production lines for the Dolce Gusto range, trebling output at the factory.

The number of employees is set to rise at the site to 800 by 2013, with some of the new recruits joining Nestlé's training academy.

The coffee pods created on site will be available for sale in the UK and 38 other countries.

Nestlé has about 7,000 employees across 19 sites in the UK and Ireland.