Britvic to close factory in cost cutting plan
WORKERS at aYorkshire factory face losing their jobs under a cost cutting plan drawn up by soft drinks form Britvic.
Up to 400 jobs at the Huddersfield-based company, which employs 3,300 people, are under threat as part of an attempt to cut annual costs by £30m over the next three years.
Britvic said it would close a factory in Huddersfield, ending production of its Drench and Pennine Spring water brands to focus on Ballygowan mineral water, which is produced in Ireland.
It also intends to shut down a factory in Chelmsford, shifting some of its production to Leeds, while the production of Fruit Shoot will be transferred to facilities in Ireland and France. It is also closing a warehouse in Belfast.
As part of the new strategy, it will boost investment in the international unit by £10m a year by 2015. Britvic recently announced an agreement with Narang Group to distribute Fruit Shoot in India from next year. It expects to set up a 10-strong team there to work on the deal.
On the proposed closures, Britvic’s chief executive Simon Litherland, said: “It’s always difficult to make those sorts of decisions, particularly because it impacts people. We are committed to supporting people throughout the period but it’s tough. We need to remain competitive.”
The firm announced its decision as part of its interim financial results for the 28 weeks to April 14.
They showed pre-tax profits jumped 51% to £37.5m for the 28 weeks to mid-April, on revenues down 0.3% at £639m.
The company is still awaiting the outcome of a Competition Commission inquiry into its proposed merger with Irn Bru maker AG Barr, which effectively put the £1.4bn tie-up on hold.
Mr Litherland said: “We must wait to see the outcome of that, at which time the management boards will see if they can agree terms of the merger.”
The commission’s ruling is expected by the end of July.
