NEARLY 100 jobs are at risk at a factory in Caerphilly county borough.

Pasty and pie maker Peter's Food Service Ltd - otherwise known as Peter's Pies - announced it is cutting production at it's Bedwas factory.

The company said it "has chosen to step away from some of its less profitable businesses."

A statement from Peter's Food Service Ltd said: "The business has experienced exceptional increases in raw material prices, and it has been unable to pass these increases onto its customers in an extremely competitive sector.

"The company has therefore taken the decision to terminate some contracts which it considers unviable for the business.

"his, coupled with the normal seasonal decline within the sector at this time of year, will mean production at the company’s Bedwas site will be reduced, and therefore, a number of staff could be affected by these changes.

"A period of consultation has begun with staff about potential redundancies. It is envisaged that the total number affected could be approximately 90 employees.

"As a company, we recognise our responsibilities to our staff, and will do everything possible to minimise the impact of this on them."

Trade Union USDAW have also released a statement about the situation.

Jason Stevens - Usdaw area organiser said: "We've been informed by the company that they have reviewed the business and propose reducing production at the Bedwas site. "Clearly this is very bad news for the staff affected. Usdaw reps have entered into consultation talks where we are interrogating the business case for the proposals; we are seeking to minimise compulsory redundancies and ensuring the business has a viable future. "In the meantime Usdaw is providing our members with the support, advice and representation they require at this difficult time."