Nestlé joins food sector meltdown
22 Sep 2006
The job losses are a necessary part of a major restructuring and investment programme to improve the competitiveness of the Nestlé Rowntree confectionery business, according to a statement from the company.
“The UK confectionery market is very competitive. Our Nestlé Rowntree business has market-leading brands and strong potential, and this restructure and investment programme will ensure that it is competitive and fit for the future,” said Alastair Sykes, CEO of Nestlé UK.
The company also unveiled a £20-million investment plan to expand the other facilities on the York site and, it said, safeguard the 1,800 remaining jobs there. The package, however, is dependent on local authority planning approval for residential and commercial buildings on the disposed land.
“These plans will streamline our operations, strengthen our competitive position, and establish our York factory as a state-of-the-art manufacturing site for the future, helping to safeguard long-term employment of our employees in York,” claimed Paul Grimwood, managing director of Nestlé Rowntree.
Among other recent cutbacks, Northern Foods plc, last month, announced the closure of its Trafford Park bakery with the loss of 690 jobs. The Manchester site, which produces chilled savoury pastry products, posted 2005/06 losses of over £3 million. The closure will enable the company to focus on its more competitive business areas, Northern Foods said.
Another major brand Heinz is closing is 125-employee Aston plant and transferring the production of HP Sauces from there to its European sauces manufacturing centre in Elst, Holland. The Lea & Perrins Worcestershire sauce bottling operation at Aston is, meanwhile, being returned to the company¹s Worcester facility.
