The 2 Sisters Food Group has revealed plans to cease operations at its Llangefni chicken factory in Anglesey resulting in over 700 job losses.
The Birmingham-based company, which is one of the largest food producers in the country, said the poultry processing operation was “not sustainable” and lacked the necessary space.
The company stated in a statement that Llangefni, which it purchased in 2013, is one of its smallest sites and that products could be manufactured more efficiently elsewhere.
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The company has invested £5 million in the site but says the building was old and would require significant investment to bring it up to the same standard as its other operations or face closure.
The company statement said: “The cost to produce here is higher, and it would require significant investment to bring it up to the standards of our other factories. Our products can be made more efficiently elsewhere across our estate.
“Therefore, our proposal is to cease operations at the factory, putting the site at risk of closure.”
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The factory’s closure would result in the loss of 730 jobs.
However, the company stated that it would consult with employees before making any final decisions on closure.
It said: “Clearly this will be extremely disappointing news for our Llangefni colleagues, and it is no reflection of their continuing hard work and commitment.”
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“However, we have a duty to remain competitive and protect our wider business on which many thousands of people depend.”
2 Sisters is headquartered in Birmingham and operates throughout the West Midlands, as well as in North Wales, supplying poultry, biscuits, and baked goods to a variety of businesses and supermarkets.
The company said it had reviewed its UK poultry division to overcome “challenges facing the food manufacturing sector”.
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According to the most recent accounts filed with Companies House, the group lost £95.5 million from July 31, 2021, to July 31, 2022. While turnover increased from £1.2 billion to £1.4 billion, the group’s gross profit margin fell from 8.8 percent to 6.4 percent.
In an interview with The Grocer last month, chief executive Ronald Kers warned about the challenges facing the industry due to soaring production costs in energy, feed and labour and the worst-ever avian flu outbreak.
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He said: “Whenever you lose tens of millions of pounds in revenue, that has an influence on any business, large or small. Many businesses (across the whole of the food sector) are now in a very precarious position and the worst is yet to come.”
Ynys Mon MP Virginia Crosbie said the news was “devastating” for the employees who are threatened with redundancy at the site.
Source: Business Live
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