Nestle has unveiled plans to restructure its confectionery business in the UK, which may affect a total of 573 jobs.

The Swiss-owned confectioner said it is planning to close its factory in Fawdon, Newcastle, by the end of 2023, costing 475 jobs.

It also plans to streamline production in York, which may lead to 98 people losing their jobs.

The Fawdon factory is engaged in the production of Fruit Pastilles while the York site produces KitKat chocolate products.

The company plans to move production activities of the Fawdon facility to other existing factories in the UK and Europe.

Nestle added that it plans to invest in its manufacturing units in York and Halifax to adapt its future confectionery manufacturing processes.

Under its investment plan, Nestle will invest $28.2m (£20.2m) in its York manufacturing unit to upgrade and increase the manufacture of Kitkat products.

It will invest $12.8m (£9.2m) in its Halifax facility for accommodating the largest portion of Fawdon’s current production activities.

In a statement, Nestle said: “Our Fawdon factory is home to many smaller, low-growth brands and maintains a diverse and complex mix of production techniques. In contrast, our factories at York and Halifax have clearer specialisms and manufacture some of Nestlé’s biggest brands.

“The decision to propose Fawdon’s closure follows significant investment and a sustained effort by the factory team to reduce that complexity and introduce new products in recent years. The skilled and dedicated team at Fawdon have worked tirelessly to deliver those changes and these proposals are absolutely no reflection on their efforts.

“We do not underestimate the impact that the closure of Fawdon factory would have on the local area and, as part of the consultation, we want to work with the local community to find ways that we can support the area and our employees if these proposals were to go ahead.”

GMB National Officer Ross Murdoch said: “To ruin hundreds of lives in a ruthless pursuit of profits, to the very workers who’ve kept the company going during a global pandemic, is sickening.

“Nestle is the largest food producer in the world, with astronomical profits. It can afford to treat workers right.

“Instead, they’ve allowed factories to deteriorate, outsourced production overseas and now slashed 600 jobs.

“It’s corporate greed at its worst – GMB and Unite will fight for every job.”