Vion, which is the owner of a factory in Broxburn, West Lothian has said that it will not accept a plan headed by the Scottish government under which the government was ready to buy the plant from the company and then lease it back to the owners.

Vion said that the plan proposed by Scottish Finance Secretary, John Swinney is not sufficient to curl the losses of £79,000 a day. The factory is the world's biggest haggis producer and it is now likely to be closed down after 80 years.

Mr Swinney's plan proposed that the Scottish government, West Lothian Council and Scottish Enterprise acquire the plant from the company and then lease it back to on a commercial basis. The plan would have enabled a capital investment and potential savings of £4m.

"What we were trying to do in this proposal was to recognize the fact that should Vion choose to close the plant, that's not a cost-free option," Mr Swinney said.

Vion had said in July that it is planning to close down the factory and the company might stop producing Hall's products. The consultation process of the company is expected to be completed in three weeks.