A CHEPSTOW factory plans to move its production to a new £13 million site near its current factory.

Engineering firm Mabey Bridge recently bought a site on the Newhouse Farm Distribution Park in the town along with 18 acres of land.

The company said yesterday it will apply for planning permission from Monmouthshire County Council later this year to relocate its heavy steel fabrication and coating facility to the new site.

The application will be for minor modifications to the current buildings and site layout at Newhouse Farm.

If it is approved, the move from its Station Road site is expected to start next year.

All production staff at the lower Chepstow site will have the chance to move over to the Newhouse site.

Shaun Chivers, manufacturing director for Mabey Bridge, said the reaction about the move from the site's 400 employees has been "overwhelmingly positive".

Managing director Peter Lloyd added: “Obviously the move would be subject to obtaining planning permission but if we are successful then it makes perfect business sense to undertake the turbine tower manufacture and heavy steelwork fabrication under one roof.”

The news also comes after the firm confirmed last month that it has planning permission to increase the size of the warehouse to help it build wind turbine towers.

It will be able to create around 300 wind turbine towers each year when finished.

The company will invest a further £25 million in this and will create 240 new skilled jobs.

Mabey Bridge wants to keep its offices in Chepstow where the sales, engineering and other support staff are located.

But this could become available for development in the future as part of the council's Local Development Plan.