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15:47 GMT, Tuesday, 14 October 2008 16:47 UK

Hundreds of factory jobs at risk

More than 500 jobs are at risk after a company announced plans to close its food production factory in Grimsby.

The Iceland-based Bakkavor Group said "sustained levels of unprecedented inflation" had forced it to consider closing its Mariner Foods plant.

The factory employs 530 people. A 90-day consultation phase with staff and unions is under way.

Bakkavor Group said the closure of the site was "the most viable option" but it would consider alternatives.

A spokesman said the proposed closure was part of the company's restructuring plans to improve productivity.

'Difficult time'

He said: "Uncertain consumer demand on top of the rise in inflationary costs has resulted in Bakkavor having to consider making changes to align its cost base.

"Over the last year, the food industry has experienced sustained levels of unprecedented inflation. Mariner Foods has not been exempt from these pressures and consequently is experiencing continued unsustainable losses.

"This is a very difficult time for all of the staff involved, and we are focused on keeping them appropriately updated throughout this consultation process. The closure of the site is the most viable option; however we will consider all alternatives to the proposal during the consultation process."

If the closure went ahead, staff would be offered alternative roles at other locations if possible, the company said.

The factory, at the Great Grimsby Business Park, was acquired by the Bakkavor Group in 2001 and makes ready meals, soups and sauces.



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Related to this story:
Struggling pasta factory closes (16 May 08 |  South Yorkshire )
Icelandic firm agrees Geest deal (08 Mar 05 |  Business )

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