Biscuit plants to shed 300 jobs

Uttoxeter staff have held marches in an effort to save their jobs

About 300 jobs are set to be axed at two Fox's Biscuits factories.

Owner Northern Foods is spending £26.5m on robot technology at plants in Batley in West Yorkshire, Kirkham, Lancashire and Uttoxeter, Staffordshire.

Leeds-based Northern said the equipment would lead to the loss of 200 jobs at Batley and 100 posts at Uttoxeter. Some 80 jobs will be created at Kirkham.

But it has provided a stay of execution for remaining workers as it put on hold plans to close Batley or Uttoxeter.

In July last year, Northern set out proposals for a £50m high-tech facility, which would have led to the closure of one of the two sites and the loss of up to 1,000 jobs.

Robot technology

On Tuesday, Northern said it had halted the process due to the rising cost of investment linked to unfavourable exchanges rates and an uncertain economic environment.

However, it added that plans to cut its number of sites from three to two remained an objective and the company pledged to review its strategy in 18 months.

The robotic technology will include new machines to provide packing functions at the factories, including a new production line for Fox's Melts and Moulded chocolate at Batley.

The Batley plant currently employs 950 staff, while Uttoxeter and Kirkham have 850 and 400 workers respectively.

Graham Hunter, managing director of Fox's Biscuits in Batley, said his goal was to minimise the number of compulsory redundancies at his plant.

He said: "We don't expect them to happen until next year and we do expect a number of voluntary redundancies to come forward that will help eat into the 200 number."

The announcement came as Northern, which also makes Goodfella's and San Marco pizza, announced underlying pre-tax profits of £12.9m for the half-year to September 26, up from £12.7m a year earlier.

Total sales fell to £466.9m from £468.6m, reflecting the mothballing of its Fenland Foods ready meals facility in Grantham.