A RECYCLING facility used by a supermarket distribution centre in Chepstow will be relocated, creating extra possible costs for its 100 workers.

This comes after an announcement on Tuesday by Tesco to move its distribution centre and 750 jobs just under nine miles away to Pilning, in Avonmouth, the Norbert Dentressangle recycling facility will also move.

A spokesman for Norbert Dentressangle said the site is not closing and there are no plans to lose any jobs.

But the unit is being relocated around ten miles away.

Norbert Dentressangle is currently located around 100 yards away from the Tesco distribution centre, and does all the recycling for Tesco stores in the region.

A worker from Norbert Dentressangle, who did not want to be named, said 99 of the 100 people who work there will now have to pay Severn Crossing tolls and will not be able to afford to do so.

Assembly Member for South Wales East, Michael German described the move by Tesco as a “real blow” for the economy of Chepstow and South East Wales.

He said it is a great disappointment that Tesco found no alternative sites in the area and workers will now have to pay the £5.40 toll on the Severn Bridge every day.

Mr German said he asked Tesco managers to make a compensation package available to employees who face paying out an extra £27 a week.

The distribution centre will serve stores in Wales, the South and the South West of England.

Tesco corporate affairs manager Juliette Bishop said: “We have worked extremely hard to find a new site just under nine miles away and the proximity to Chepstow will allow for all of our staff to have the opportunity to take a role at the new facility.”

A period of consultation with all Tesco staff and their trade union representatives, Usdaw, will now begin before the planned opening of the new site in 2010.