It wants to sell the five-acre London Road site, surrounded by housing, for residential development and then move its 150 staff into a modern, purpose-built plant on the outskirts of the city.
Chief executive Clive Parkes said the premises, built in 1935, were too low and residents were suffering from the noise of the plant.
"The residents complain about us, the noise and dirt, and I understand that. And we have an area we can't run 24 hours a day, " he said.
Paul O'Connor, principal planning officer at Worcester City Council, said industrial land providing employment was a higher priority than residential land in the city.