Plans to close a smoked salmon factory that employs more than 350 workers were announced today by company bosses.

Plans to close a smoked salmon factory that employs more than 350 workers were announced today by company bosses.

The Seafood Company revealed it is entering into a consultation over the proposed transfer of production from Strathaird Salmon in Inverness to its site in Fraserburgh.

Strathaird Salmon was set up in Inverness in 1978 and employs a total of 354 staff in the town.

But if the proposed closure goes ahead, the site will close in August next year.

Local politicians described the move as "very worrying" and "devastating news" for workers.

Iain Herd, managing director at Strathaird Salmon, said: "We regret having to table this proposal.

"However, in the current economic climate, with the costs of running our business increasing by over £900,000 year-on-year and a need to make over £7m worth of capital investment over the next five years, we must consolidate our operations to secure the long term growth and profitability of the business and to safeguard the future for our employees in Scotland."

He added: "In the event of closure we will do our utmost, together with the relevant public bodies, to redeploy or retrain those affected."

David Stewart, a Labour MSP for the Highlands and Islands region, said: "This proposed closure is very worrying for the 350 staff who work at Strathaird Salmon's processing facility in Inverness, especially in the run up to Christmas."

He described the salmon industry as being vital to the local economy and said the proposed closure would have an impact on the area.

Mr Stewart added: "I welcome Strathaird's commitment to seek alternative employment for staff - they have an additional facility in Fraserburgh which has spare capacity, and they are keen to redeploy staff where possible. They are also providing funding for re-training."

And Danny Alexander, the Liberal Democrat MP for Inverness, stated: "This is devastating news for the hundreds of local people affected, and very worrying for the local economy as a whole.

"While this decision is driven by commercial considerations, it is deeply disappointing that a company that has been part of the local economy for so long should have taken this decision."

Mr Alexander added: "This news will also serve as a wake-up call to anyone who thought that the Highlands could be insulated from the economic problems affecting the rest of the country.

"Ensuring that our area weathers the economic storm must be the top priority for everyone over the next few months."