WIVELISCOMBE'S economy has been dealt a devastating blow with news of major redundancies at one of its biggest employers.

A total of 113 jobs are to go at the town's pig processing plant after owners Karro Food Group announced it was ending slaughter and butchery operations at the Sandys Moor site.

Just 18 jobs will remain as the company retains the curing and food service sales operations side of the business.

Karro says the decision follows a now completed strategic review of the business, aimed at ensuring necessary scale and efficiency across its operations.

Karro was formed following a management buy-out of Viron's pork business in January.

Chief executive officer Seamus Carr said: "We have reached this stage extremely reluctantly, and only after ruling out all other options.

"We will work with all impacted employees to help them through this process and, wherever possible, find opportunities for them to transfer to other sites."

Mr Carr said there was over-capacity in the UK meat industry and Karro, in common with its competitors, needed to ensure that the business was operating efficiently and that its sites were at close to full capacity.

"Sadly, our Wiveliscombe slaughter and butchery operation simply does not have the necessary scale to operate profitably and so we must propose this change in order to ensure our continued viability and growth, and safeguard other jobs across our business."

He said no other redundancies were planned and the food service sales business and curing operations carried out for Karro's Case and Sons brand and private label meat ranges were both key parts of the company's plans for growing its overall business.

"Karro will continue to develop and grow these areas in Wiveliscombe," he said.

The news, announced on Wednesday, was greeted with shock and dismay in the town.

Wiveliscombe Parish Council chairman Bryn Wilson said it was "a heck of a blow" to employment in the town.

"The plant is one of the biggest employers and has been hugely important to Wiveliscombe's economy for the past 20 years or so," he said.

"The mood will definitely be grim as this begins to filter through.

"A lot of local people are employed at the plant and this is going to have a real effect on shops and other businesses.

"It is an awful lot of redundancies and people will be devastated by this."

Karro is consulting with staff and trade unions over its plans and said it was doing all it could to mitigate the job losses.