Heinz plans factory closures
HEINZ, which faced strike action over pay at its plant near Wigan in January, has said it plans to close five factories in response to rising commodity prices.
The US-owned group has not said where the axe will fall but two of the five will be in Europe. Two will close in the US and one in the Pacific region.
The factory at Kitt Green, one of five in the UK, employs some 1,200 workers and makes beans, soups, puddings and pasta meals.
The proposed closures are part of a drive to strip out costs of £98m from the group’s manufacturing operations and supply chain. It expects to see a 7% rise in commodity prices this year. In the three months to April 30 profits rose by 16% to £136.1m but this was below market forecasts.
The pay dispute in Wigan led to three separate days of strike action in December and January. It was resolved after management offered a rise of 3.9% in the year to April and 3.9% in 2011-12.
