LISTER Shearing have confirmed they are to follow Lister Petter out of Dursley around this time next year.
Both manufacturing firms, with a combined workforce of 280, are to move to different locations in the district, ending over 100 years of history with the town.
Lister Shearing, which designs and manufactures animal shearing and clipping equipment, will relocate to larger, more modern premises in Stonehouse which will pave the way for continued development of the business.
The company, which broke off from the original RA Lister firm in 1909, has bought the freehold for a 43,000sq ft building at Stroudwater Business Park for an undisclosed sum, with the 80-strong workforce expected to move in July 2014.
Managing director Alun Williams said: "After a major review of relocation options across the country, and thanks to financial support from Stroud District Council, we have decided that the long-term interests of the business and our staff are best served by relocating to Stroudwater Business Park.
"We have major plans to develop and extend our product range and have chosen our new location strategically to ensure we remain competitive in the global marketplace."
In February this year, the Gazette reported that Lister Shearing had confirmed they were considering their future in the town but had not ruled out moving to the adjacent Littlecombe business park.
Following the approval of plans for a new purpose-built production warehouse at Quedgeley West Business Park, Lister Petter are expected to move to their new Hardwicke home in the spring of 2014, with the current factory set to be demolished soon after.
At the height of their 140-year stay in the town, the global manufacturer of gas and diesel engines employed almost 5,000 people.
A spokesman for St Modwen, which is developing the Littlecombe site which sits between Cam and Dursley, said demolishing the outdated Lister Petter buildings would allow the continued development of the 90-acre site, including a road linking both ends.
The move will allow St Modwen and landowner Stroud District Council to continue with the £150million scheme to develop homes, community facilities and business space.
Dursley councillor and leader of Stroud District Council Cllr Geoff Wheeler expressed sadness at the departure of the firms but was pleased jobs would stay in the district.
"We understand that the move to Stonehouse will strengthen Lister Shearing's future prospects and wish them and their employees continued success for the future," he said.
"Lister Petter moving from Littlecombe to Hardwicke will mean upheaval, but the approval of this application is a big step forward which will allow us to keep them in the district, retaining 200 skilled jobs."
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