Somerlap Forest Products is poised to concentrate all its manufacturing at one site off the M5 at junction 22.
The company will close its Ubley sawmill by the end of the month and transfer all activities to its site at Mark near Wedmore. The 37-strong workforce and equipment is being transferred to Mark.
Managing director Kevin Bond said that the move was needed for the expanding product range and ‘dovetailed with the need to optimise the Mark facilities’.
Somerlap said no redundancies will occur and at least two more staff will be recruited.
Plans are said to be in hand for the commercial redevelopment of the Ubley site but no details have been disclosed.