Field Group marketing manager Bob Houghton said: "There is no new 20m contract, were simply consolidating the production of certain products."

The transfer to Bourne will allow label production to be carried out under one roof and likewise with cartons. The restructuring will affect 40 staff, who have been given the option of remaining in Nottingham and transferring to carton production, or moving over to Bourne and continue in label manufacturing.

Houghton said: "We dont want to make any redundancies, although voluntary redundancy may be considered, but we do hope we can reach some kind of agreement with our staff."

The two sites predominately produce work for pharmaceutical clients including Boots, Astra Zeneca, Accantia and Roche.