Supermarket fruit and juice business Orchard House Foods is closing its Gateshead factory, with the loss of up to 430 jobs.
The company, which supplies the likes of Marks & Spencer, Morrisons and Pret A Manger, said it plans to move production to its existing base in Corby, Northamptonshire.
Orchard House, which makes prepared and packed fruit, fruit drinks, fruit jellies, fresh fruit yoghurts, compotes and granola, said the move is part of plans to consolidate production in Corby by the end of November this year .
It comes amid rising costs of food, energy, labor and transportation.
The company said it has “started a consultation process with affected colleagues, with up to 430 jobs at risk of redundancy”.
He added that a significant number of jobs will be created in the East Midlands, with support for colleagues from Gateshead who want to relocate.