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20/09/2006
Nestle announces job losses
Swiss food firm Nestle has announced that it is cutting 645 jobs at its factory in York.
The firm, the world's largest food and drink company, will sell part of the site in York and move the production of some of its products to other factories in Europe.
Nestle said that the production of Smarties would move to Germany, Black Magic chocolates would be made in the Czech Republic and Spain would produce Dairy Box chocolates.
However, the York plant will continue to produce KitKats, Aeros, Yorkies, Milky Bars and Rolo Bars and 1,800 people will continue to be employed at the plant.
The production of Drifters and Matchmakers will move to other factories in Britain.
Nestle said that it would invest £20 million in order to improve facilities at the York plant and safeguard the remaining jobs there.
It also said that it expected that half the jobs losses, which would begin next year, would come from voluntary redundancies or early retirements.
Commenting on the news, Alastair Sykes, chief executive of Nestle UK, said: "The UK confectionery market is extremely competitive and Nestle Rowntree must therefore ensure that its operations are cost efficient and competitive. The factory in York currently has high manufacturing costs and is not as efficient as other Nestle confectionery factories in the UK and Europe."
The move has been criticised by the GMB union. Union organiser John Kirk said: "Nestle took the profits from the brands year in and year out and Nestle themselves failed to invest adequately in the plant and building in York. To use this neglect as the reason to move heritage brands to plants overseas where Nestle did invest is not acceptable. The move will fiercely resisted."
(KMcA/EF)
The firm, the world's largest food and drink company, will sell part of the site in York and move the production of some of its products to other factories in Europe.
Nestle said that the production of Smarties would move to Germany, Black Magic chocolates would be made in the Czech Republic and Spain would produce Dairy Box chocolates.
However, the York plant will continue to produce KitKats, Aeros, Yorkies, Milky Bars and Rolo Bars and 1,800 people will continue to be employed at the plant.
The production of Drifters and Matchmakers will move to other factories in Britain.
Nestle said that it would invest £20 million in order to improve facilities at the York plant and safeguard the remaining jobs there.
It also said that it expected that half the jobs losses, which would begin next year, would come from voluntary redundancies or early retirements.
Commenting on the news, Alastair Sykes, chief executive of Nestle UK, said: "The UK confectionery market is extremely competitive and Nestle Rowntree must therefore ensure that its operations are cost efficient and competitive. The factory in York currently has high manufacturing costs and is not as efficient as other Nestle confectionery factories in the UK and Europe."
The move has been criticised by the GMB union. Union organiser John Kirk said: "Nestle took the profits from the brands year in and year out and Nestle themselves failed to invest adequately in the plant and building in York. To use this neglect as the reason to move heritage brands to plants overseas where Nestle did invest is not acceptable. The move will fiercely resisted."
(KMcA/EF)
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