First Milk could axe up to 93 jobs at its Maelor creamery near Wrexham following the loss of a cheese packing contract with Dairy Crest.

The dairy co-operative bought the site from Dairy Crest in 2006 but continued packing for the company. The work, which accounts for about 40% of the volume packed at the plant, will be transferred to Nuneaton in January.

Chris Palmer, First Milk’s general manager at the Maelor plant, claimed the co-op recognised the possibility that Dairy Crest would want to set up their own plant. “That has now become a reality.”

He hoped that the staff cuts could be achieved through voluntary redundancy.