Northern Foods to close Ethnic Cuisine factory

YORKSHIRE-based Northern Foods today announced it will close its Ethnic Cuisine ready meals factory in Swansea.

The Leeds-based company has been in discussions with the anchor customer to look for commercially viable terms for the products supplied by the factory, but mutually agreeable terms could not be reached.

Northern Foods said: “Accordingly, we will be commencing consultation with employees on a proposal to close the site.”

Northern Foods acquired the struggling Swansea factory in November 2007 and has continued to invest in the site to improve its infrastructure and capabilities.

Recent negotiations could not secure a viable return for current and anticipated future investment. The financial statements for 2009/10 will include a non-cash exceptional impairment charge of around £16m.

Subject to the consultation process, the company will incur a one-off exceptional cash restructuring charge next year, estimated to be around £4m.