IT is a sweet deal which will see more than 100 jobs secured in a Gwent factory - and even more could be created.

The UK's largest snack bar maker has bought the plant and machinery from Newport-based confectionery firm GF Lovell.

Now 120 jobs at GF Lovell have been secured and more could be on the cards as a result of a £3.36 million investment at the Gwent plant.

The deal means that instead of Lovell making their own sweets, including Milky Lunch, North Wales-based Halo Foods will make them, but Lovell will continue to sell them. Halo has not bought the factory in which Lovell is based, but has purchased its assets, including production facilities.

Manufacturing jobs will be kept at the 50,000 sq ft Newport site, but other functions such as technical services and research and development will be shifted north to Halo headquarters at Tywyn, Meirionnydd.

Halo Foods chairman Peter Saunders said they had made the purchase in a bid to keep up with demand for its products. Mr Saunders said: "Our operation in Tywyn has been working around the clock for many months now to meet demands from a huge surge in business.

"Six months ago we subcontracted part of the business to Lovell's and have become a major customer within that time. In discussions with Harry Kear, both parties agreed that the acquisition of Lovell's assets by Halo was a logical step forward."

He said the multi-million pound investment at the Newport site, including £685,000 from the National Assembly through a regional selective assistance grant, would start immediately.

First Minister Rhodri Morgan said: "Halo Foods is already a great Welsh success story and I am confident that this funding from the Welsh Assembly government will help the company go from strength to strength."

Halo has appointed Martin Mallinson as its new general manager at the Newport site and says it is looking to recruit 20 temporary staff to meet seasonal demand immediately.