South Australian candy maker Smyth’s Confectionery has been in operation for more than 100 years with a factory in inner Adelaide.

But in October, the state government announced it was adding another lane along the busy Smith Road, impacting businesses situated along the strip including Smyth’s Confectionary.

The company’s owner, Peter Smyth, who is the great grandson of the original founder, is currently in negotiations with the South Australian government and he has involved lawyers to come to a resolution.

However, he isn’t hopeful and it’s looking like the business will have to shut its doors permanently in June next year, with redundancies already underway.

“We’re not selling. We’re being extinguished by the government,” he told news.com.au.

Mr Smyth said he had asked the government to fund the relocation of the factory but so far it didn’t appear they were coming to the table.

“We’re working through all that at the moment,” he said.

“Financially, they weren’t keen to help us relocate. They’re not obliged to either under law.”

Without government support, the lolly boss said he is unwilling to move his factory on his own dime.

“At the end of the day, it was forced upon us. But it was ultimately our decision not to relocate,” Mr Smyth added.

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Until June next year, Smyth’s Confectionary factory will still be operating at full production.

Staff are “all aware” of the looming shut down.

The South Australian government announced the changes to South Road as part of changes to Adelaide’s North-South Corridor.

They plan to add a third loan for southbound traffic to improve traffic flow in a move slated to cost state taxpayers $9.5 million.

Smyth’s Confectionary has been part of South Australia’s business scene since 2010 and sells Christmas Mixture bags in grocery stores such as Coles and Woolworths.

alex.turner-cohen@news.com.au