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Coun Andrew Carter, Leeds City Council deputy leader and executive board member for development, said: "This is a sad day for the city of Leeds. I'm very concerned about the job losses and I extend my sympathy to the workers affected.

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"The name Tetley has been associated with Leeds for over 200 years and is an integral part of our city's history.

"In the past we have stood ready to work with Carlsberg to secure a long term future for its brewery in Leeds but unfortunately in the current difficult economic conditions it has not been possible and I am saddened it has come to this.

"Nevertheless, we'll continue to work with the company to do what we can to secure its staff new employment by 2011.

"I have met with representatives from Carlsberg and they have assured me they are seeking to continue brewing Tetley-branded ales in Yorkshire.

"I hope therefore, that ultimately those jobs can be kept in the Leeds City Region.

"I am afraid this is another reminder that nowhere is immune from the recession. We have to do what we can to minimise its effect."