The announcement was made shortly after it was revealed that SCA Timber Supply UK had won a deal with the group, starting next year, to provide planed softwood and mouldings for all its merchant business and was building its own £5m planing plant.

Travis Perkins confirmed this week it was outsourcing the bulk machining of PSE and mouldings for its merchant business.

Travis Perkins said the two sites, which employ 110-plus in manufacturing and distribution, were in need of investment, which it could not justify.

"The milling and supply of timber is a highly capital investment business and much of our existing equipment is either in need of investment to maintain efficiency and quality, or is simply becoming obsolete," the company said.

"Supplying high quality products at a compelling market rate will become increasingly unsustainable as significant investment is required and costs continue to rise."

Travis Perkins said some employees would be impacted, but refused to say how many or when the operation would cease.

SCA Timber Supply announced last month it would be building a £5m planing plant on Humberside dedicated to builders merchants products. This was part of a strategy to devote more wood supply to the British builders merchant sector.

Travis Perkins operated four milling centres, but in 2007 closed Aylesford in Kent and moved the work to Ferndown and King’s Lynn. Cardiff retained its own work.

"King’s Lynn, Ferndown and Cardiff will continue as distribution centres for timber and sheet products," the company said.