Tuesday's announcement by Kraft Foods of a £50 million investment in UK chocolate and biscuit manufacturing was welcomed by Birmingham business leaders as a significant investment for Cadbury's Bournville plant.

Michael Ward, president of Birmingham Chamber of Commerce, said the move would keep Bournville at the heart of the British chocolate industry.

He added: "We understand the drive to improve productivity in chocolate manufacturing and job losses, while regrettable, will be phased in over  two years from March 2012. 

"Low-productivity has been a drag on West Midland's manufacturing for decades and too many businesses are still not improving productivity fast enough."

Mr Ward said that today's announcement, which puts £44 million into chocolate manufacturing sites at Bournville, Chirk in North Wales and Markbrook in Herefordshire,  is about keeping a local iconic brand as internationally competitive as possible through a long-term strategy.

"Productivity is a race without a finish and Kraft offers a great example to other manufacturers. But no business can give job number guarantees.  

"What can be guaranteed is that businesses that drive up productivity stand the best chance of securing their future and supplying long-term, sustainable jobs."