Blackpool Council has agreed to give a £125,000 grant to a manufacturer in the town in order to save 35 jobs.
Town hall chiefs are providing the grant to Tangerine Confectionery which announced plans in March to close its Clifton Road site in Marton and transfer work to other sites in the UK next year.
The money will be used to retain key production lines at the company’s Vicarage Lane factory, also in Marton, which means 35 jobs from the Clifton Road factory can be relocated there.
Coun Fred Jackson, Blackpool Council’s cabinet member for urban regeneration, said: “We’ve been working very closely with Tangerine Confectionery since the announcement of the closure of the Clifton Road site.
“As a result, we’ve been able to provide a grant to help the company to relocate around 35 jobs to the Vicarage Lane site.
“Tangerine has been a major employer in Blackpool for many years and we hope this measure will allow them to remain a key player in the local economy.
“Going forward, we will be offering as much support as we can to any workers who are facing redundancy.”
Up to 166 staff from Tangerine’s Clifton Road factory have been informed they will be affected by the changes, which will see the factory close by March 2015.
Keiron Russell, HR Director at Tangerine Confectionery, said: “The business will continue its consultation with the workforce and other stakeholders to identify any further opportunities to reduce redundancies at Clifton Road.
“We appreciate the work of the council to bridge the extra costs to move product lines, including Chews and Bon Bons, to Vicarage Lane.”
Tangerine Confectionery brands include the 80s Wham bar, Sherbet Fountain, Dip Dab and Henry Goode’s soft eating liquorice, all under the Candyland brand.