ONE of the country's leading soft drinks manufacturers is closing its factory in Atherton with the loss of 110 jobs.

The move by Glasgow-based Irn-Bru maker AG Barr, was announced at the same time as the company revealed annual profits of nearly £18 million.

The company said it was planning the closure as part of a restructure that will see £6.5 million invested in its production sites in Mansfield and a new factory in Cumbernauld, near Glasgow.

A spokesman from the company's regional head office at Mansell Way, Middlebrook, said: "To safeguard the longer-term stability of the business, it became clear that investment in both England sites was impossible.

"Our Mansfield site was better placed to expand, as the company had already outgrown its Atherton site."

Barr moved 100 office staff from the Atherton site to its new Middlebrook offices 18 months ago.

A statement from Barr said: "Today we have announced our plans to make further significant investments in our production facilities at Cumbernauld and Mansfield at the same time as we plan the closure of our Atherton site.

"On completion, these changes will give us the operating platform and cost profile to ensure that we can continue to compete successfully in our key markets.

"The company is in consultation with employees with a view to closing the site by early 2007.

"One-off costs, relating largely to the closure of the Atherton site, are estimated at £3.2 million and ongoing operating cost improvements are expected to be about £1 million per year from the 2007 to 2008 financial year."

The regional office of the Transport and General Workers Union, which represents staff at the site, said that it was aware of the proposed move, and that meeting with staff and management were planed in the coming days.

Barr also revealed that profits for the year to January 28 increased by 10 per cent to £17.9 million, while turnover increased to £128.8 million, up 1.2 per cent on 2005's £127.2 million.