Cadbury factory in Bristol to close by 2011 with 400 jobs to be lost
Cadbury factory in Bristol to close by 2011 with 400 jobs to be lost
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Wednesday, 10, Feb 2010 09:54
By Sarah Garrod.
Kraft, the US food giant which recently took over British confectioner Cadbury, has announced the closure of the Dairy Milk-maker's Bristol plant.
The closure of the factory, in Keynsham, will see 400 jobs lost and comes after Kraft promised it would keep the factory, which Cadbury had already earmarked for closure, open.
Kraft said in a statement that the work would be transferred to Poland, as had been originally planned by Cadbury. In a statement, the American food giant said after extensive talks with Cadbury, "it has reluctantly accepted" the factory will have to shut by 2010.
The US group said it was "unrealistic to reverse" Cadbury's plans due to the £100 million already spent on building construction facilities in Poland.
Irene Rosenfeld, chairman and chief executive of Kraft Foods, said: "It became clear that it is unrealistic to reverse the closure programme, despite our original intent to do so. While this is a difficult decision, we have moved quickly to end any further uncertainty."
There were concerns from employees and unions during the time of the takeover that jobs would be lost when Cadbury was bought under the name Kraft. The Kraft/Cadbury takeover saga began in September 2009, when the British firm rejected a £10 billion bid. Cadbury then rejected Kraft's hostile bid in November, and following a detailed bid aimed at shareholders from Kraft, Cadbury urged its shareholders to reject the offer later in 2009.
But on February 2nd, Kraft officially completed its takeover of after shareholders voted in favour of the £11.5 billion ($18.9 billion) deal.
Business secretary Lord Mandelson said following the news of job losses today: "This will confirm the fears of those who felt the takeover would result in job losses. Kraft gave me no indication of this announcement when we met last week.
"It is for the company now to prove the worth of their other statements about investing in the UK."
Amid the rumours that the Bristol plant would close, Unite the union, which has campaigned for Cadbury to remain an independent British company, said Kraft had broken the trust of the British workforce.
Jennie Formby, Unite national officer for food and drink said: "The ink is barely dry on the takeover and a promise made to the Cadbury workers has been broken.
"Promises were made to the Somerdale workers which it seems Kraft had no intention of fulfilling, and which appear now to have been a cynical attempt to curry favour with the British public during what was an extremely unwelcome and unpopular takeover. This is not just a tragedy for this workforce but is also sending a very worrying message to the rest of the Cadbury workforce."
While Liberal Democrat treasury spokesperson Vince Cable said: "Government should not be in the business of picking winners and planning industry but neither should it be this permissive.
"This case is a very good example of a government indirectly helping a takeover, through the Royal Bank of Scotland which is publicly owned, and abdicating all responsibility.
"The pendulum has swung far too far and the Liberal Democrats believe that there is a legitimate role for government, acting in the wider public interest and in the interest of competition, to make sure that damaging takeovers do not take place."