JAM factory owners have pledged to do everything they can to stay in Tiptree despite failing to agree on sites for housing – a key element of their expansion plans.

Bosses at Wilkin & Sons revealed proposals in April to replace their Factory Hill base with homes, build more houses nearby and move to a larger site off the same road.

Colchester Council’s local development framework committee has agreed to the relocation in principle, but attempts to set aside land for housing have not proved successful.

Although there are fears it could lead to the factory moving out of the area, residents oppose scores of extra homes in the village.

Tony Webb, Tiptree parish councillor, said the council was against any housing linking Tiptree and nearby Tolleshunt Knights.

He said: “We hope Wilkin is able to maintain its presence in the village.

“It’s regarded very highly by the people of Tiptree.

“But, at the moment, we would support the present policy, which is no further expansion between Tolleshunt Knights and Tiptree.”

Wilkin & Sons said housing would finance the company’s growth, safeguarding hundreds of jobs.

Ian Thurgood, joint managing director, said: “Our focus continues to be on an integrated approach to development, enabling us to remain in Tiptree for the long term. We fully accept it may simply not be possible.

“We don’t need to build a factory this year or next year, but at some point, we need to do something. We’re bursting at the seams.

“As far as we’re concerned, we’re going to be in Tiptree and we’re going to do everything we can to make that the case.

“We’re looking at one or two things at the moment.”

A six-week public consultation on what sites will be developed for housing, employment and other uses in Colchester in the coming years will now be held, before the plans are submitted to the Government.

A planning inspector will then hold a public inspection next spring, and if there are no further issues, the plan will be adopted in August 2010.

Any new factory building will also require planning permission.

The report into Tiptree states: “Wilkin & Sons is an important part of Tiptree’s culture and heritage and the loss of the factory and associated uses would bring many adverse affects to Tiptree, and the borough as a whole, if Wilkin’s moved outside of Colchester.

“It is, therefore, considered to maintain Tiptree’s local distinctiveness and economy, the proposal should be supported in principle.”

Wilkin & Sons will celebrate its 125th anniversary next year.