US confectionery company Mondelez International is set to close its Cadbury factory in Dunedin, New Zealand, by the end of next year.

The company will be moving its production to Australia, which will end more than 80 years of production in Dunedin, reported Business.scoop.co.nz.

Due to this decision, approximately 250 people are anticipated to lose their jobs this year, while around 100 will become redundant after the company completely closes its business in 2018.

Mondelez vice-president for Australia, New Zealand and Japan Amanda Banfield said: “The company is focused on becoming globally cost-competitive through increased production and investment in larger sites while reducing costs, which allows us to fuel the growth in our brands.”

She opined that the Dunedin factory is located too far from its main market in Australia, which makes it an expensive place to prepare Cadbury products.

“The company is focused on becoming globally cost-competitive through increased production and investment in larger sites while reducing costs."

Roughly 70% of Dunedin’s total production is exported, primarily to Australia.

Cadbury was also losing its market share among the growing demand of local brands such as J.H. Whittaker & Sons, the second largest chocolate brand in the country.

Mondelez is currently considering making an investment at the factory site at Dunedin for future use.

The final decision about its transformation is expected to be made by April.

Known as ‘Cadbury World’, the Dunedin factory was one of the largest tourist attractions of the city wher nearly 110,000 people visit every year.