Up to 300 jobs will be moving to Westbury when a paper bag firm relocates its factory.

Welton Bibby and Baron will move to from its base at Midsomer Norton in Somerset to Westbury by 2013.

The company, which employs 300 workers, said it has been forced into the move because it needs a bigger site to continue its expansion and investment in machinery.

Managing Director, Malcolm Ross said: "Basically this site is now too small for this operation. The space we need is fairly big and unfortunately there's no industrial site in the area that is suitable.

"I hope our workforce moves with us. We will be working with the guys to understand what concerns they have and what we need to address their concerns.

"If it means some assistance in that area then obviously we will do everything we can."

The company makes paper bags for dozens of top firms, including KFC, John Lewis, Marks and Spencers, PG Tips and Typhoo.

In a statement to the firm’s workforce on Monday, Mr Ross said: "The need for continuous growth in the business is absolute and the only way to ensure the security of all of our jobs in these difficult times, therefore, we have been forced to look at alternatives further afield."

Westbury councillor Michael Cuthbert-Murray welcomed the move. He said: "I think this is a fantastic opportunity for Westbury people. It is obviously sad that the company wasn't able to find larger premises in Midsomer Norton but Westbury welcomes them.

"It will be a boost for the town just when we really need it."

Unite, the union that represents workers at Welton Bibby and Baron has pledged to do all it can for its members and said it was confident the company would soon be sitting down and talking to them.

The union's regional officer, Martin Hodges, said: "When we do sit down with the company we will be making sure that there is as little impact on the individual as we can.

"We are confident we will be able to work out what is best for the business and best for the individuals who work there. The economy of the town will be quite devastated by the news."