JOBS are set to go at a Worcester printing firm after bosses were told a multi-million pound contract will not be renewed.

Bpi Consumer VMB, which is based on the Blackpole Trading Estate, Blackpole, will see its lucrative deal with Allied Bakeries to provide packaging for bread ranges such as Kingsmill end on New Year’s Day.

The contract, believed to have been worth £30 million, was secured in October 2009.

It is unclear how many positions will be lost at the Worcester company, which boasted 350 employees at the beginning of the contract.

But Brian Taylor, business director, said the contract, to create bread bags for loaves, would cut the workload.

“We have recently been notified by Allied Bakeries that following their recent tender exercise they will not be renewing their bread bag contract,” he said.

“The contract, which has been in place for four years, will expire on January 1, 2014.

"The volumes involved are such that this decision will necessitate a restructuring of the Worcester factory and will regretfully result in job losses.”

The company has been given some hope by Allied, however, which remains in talks with the firm about possible work in the future.

An Allied spokesperson said: “Constructive discussions are ongoing with bpi Consumer VMB about future work for 2014 and beyond.

“We review all contracts on a regular basis.” 

VMB was established in 1972. It spent £3 million on high-tech machinery in 2009.

Speaking shortly after Allied gave the thumbs-up, Mr Taylor said his business was of particular interest to Allied due to “our ability to ensure supply continuity”. 

“The award of this contract was due to our ongoing strategy of investment,” he said.

“Our ability to meet the high performance and exacting quality demands of the packaging was a key influencing factor in the deal.”

Then Worcester MP, Mike Foster, toured the factory shortly after the contract was awarded, praising the “positive news”.