The last day of operation will be August 2, director Daniel Sanchez of the Sanchez Group Australia told the Mercury.

Prydes’ sweets production has been part of the Maitland business landscape and the city’s history since the 1930s.

The increasing costs of raw materials, wages and energy were blamed for the

pending closure.

“It is no longer feasible to run two sites,” Mr Sanchez said.

“A decision has been made to amalgamate Maitland with the Sydney plant where confectionery production will continue.”

The Maitland employees have been offered redeployment to the Sydney plant and this included relocation packages.

Staff have been given three weeks’ notice in writing about the closure.

They will receive all entitlements, including annual leave and redundancy payments, Mr Sanchez said. “The company will assist the staff in any way it can.

“Prydes remains fair and community focused and these employees will not be left out on the street.

“They will receive all they are entitled to.”

Mr Sanchez said there will be opportunities for staff to be placed in casual positions on construction projects owned by his company in the Hunter Valley.

“We hope to offer them work on a casual basis until they find another job. It is not an ideal situation for anybody at the moment.”

Mr Sanchez said the company is in the grips of tough times in Australian manufacturing.