US owner 'vows' to keep Tate & Lyle UK plants open
9 Jul 2010
London – American Sugar Refining Inc. (ASR) vice president Jonathan Bamburger has reportedly given assurances to workers and trade unions, following the company’s £211-million takeover of the EU sugar refining operations of Tate & Lyle.
GMB union officials and shop stewards from Tate & Lyle’s two UK plants in east London, met with Bamburger and the management of Tate & Lyle on 6 July. They voiced concerns over recent US takeovers of British companies, in particular, Kraft/Cadbury and the resulting closure and redundancies that occurred.
According to GMB, the vice president told them that ASR was committed to Tate & Lyle’s UK plants remaining open and in production and ultimately reaching their full capacity. Over 500 people are employed at the facilities.
Dave Powell, GMB senior organiser commented: “I was happy to hear the commitment from the vice president, Jonathan Bamburger, regarding the future of the Tate & Lyle sugar operations and I welcome it.
“I am sure that ASR will forgive GMB member for being sceptical of another American take over of another traditional British brand but I hope that the commitment is honoured.
“I can assure GMB members that I will keep a close eye on the situation and will ensure that ASR’s commitment is followed through.”
Tate & Lyle’s EU sugar Refining operations consist of the cane sugar refineries in London, UK, and Lisbon, Portugal, the Lyle’s Golden Syrup factory in London, UK, the associated sugar and syrup brands and the Tate & Lyle Process Technology consulting business. In the year ended 31 March 2010, these businesses had external sales of £689 million.
Announcing the sale, Javed Ahmed, chief executive of Tate & Lyle said: “Sugar refining has enjoyed a long and proud history within Tate & Lyle, but we believe the interests of this business and its employees are now best served by being part of a company for whom sugar refining is core.
“Tate & Lyle’s clear priority is to grow its Speciality Food Ingredients business, supported by cash generated from Bulk Ingredients. This disposal will enable us to concentrate our resources on delivering our strategic objectives as we focus, fix and grow our business.”
