Around 200 jobs are potentially at risk after Elisabeth the Chef announced it is to create a new facility in Leamington Spa, which will result in the merging of staff from two existing sites.

The bakery and dessert manufacturer, owned by French firm Senoble, plans to create a new facility next to its head office, which would become its sole dessert production site. The transfer of dessert operations from its site in Southam and in St Mary’s Road, Leamington, to the new facility is expected to be completed in 12 months, said a spokesperson.

Around 100 full-time staff are now employed at its Southam premises and around 250 full-time at its site in St Mary’s, with additional temporary staff employed in peak demand periods. The firm said the new site will only require around 150 staff, meaning a potential 200 job losses.

Consultations with employees are due to begin this month and are expected to last up to 90 days, with no redundancies expected before spring 2010.

The company’s Broadheath bakery site in Worcester is said to be largely unaffected by the plans, with a £3m investment planned for the coming 15 months.