Cadbury to axe 700 UK jobs

London - Cadbury Trebor Bassett is to restructure its troubled UK chocolate manufacturing operations with the phased closure of its 500-employee Keynsham chocolate factory from 2009 to 2010.  The cuts are intended to "achieve greater supply chain efficiencies," said a 3 Oct company statement. "We need to operate more effectively and reduce costs."

Under the plan, chocolate production from Keynsham would move to Cadbury's Bournville factory and a sister factory in Poland. The Bournville site is to benefit from a £40-million investment to enhance its status as a centre for chocolate production, and enable greater efficiencies within its chocolate assortment production, the company stated.

However, 200 jobs are to go at Bournville on the back of the efficiency plan as well as the move of some chocolate assortment operations to Poland in 2008. Cadbury's other two UK chocolate manufacturing sites at Chirk in North Wales and Leominster, Herefordshire - the source of a serious food poisoning outbreak last year -  are unaffected by this proposal, the company said.

"Cadbury is a great British company which has become an international success. In order to continue to compete in the extremely competitive confectionery industry in the future we need to make the right decisions today," according to managing director Trevor Bond.

"Whilst the proposed closure of our Keynsham factory will be difficult for those affected our ongoing commitment to manufacturing in the UK is absolute. Our significant investment in Bournville is a testament to that," the Cadbury boss stated.