UK: Premier closes flour mill
Premier closes flour mill
Premier Foods announced this morning (11 January) it is planning to close its Glasgow-based flour mill.
The company said the move follows a review of its milling capacity and reflects a need to reduce milling volumes. The closure will effect 15 employees who Premier hopes to redeploy at other sites.
The closure comes as part of Premier's drive to improve profitability at its ailing bread business. Last year, the group announced 900 jobs would be lost as part of a range of measures to restructure bread operations, including the closure of two bakeries and over 100 distribution routes.
Premier Foods today announces that it is proposing to close its flour mill based in Dunaskin Street in Glasgow. This follows a review of the Company's milling capacity needs in light of reduced milling volumes and forms part of its broader strategy to strengthen its milling business and build value in the Company's Bread Division.
Bob Spooner, Managing Director Bread and Group Supply Chain Director, commented:
"We recognise the impact our proposal will have on our employees. However, given excess capacity in our milling network, it's important we take the necessary steps to build a more sustainable milling business in the future."
The Glasgow mill is one of the Company's smallest mills mainly supplying flour to its Hovis bakery in Duke Street, Glasgow. If the Company's proposals are implemented, the mill would close by the end of the first quarter.
Consultations with the 15 employees affected by the proposal will commence in the coming days. The Company hopes to be able to redeploy the majority of employees affected by this announcement to alternative roles within its other operations in the Glasgow area.
Original source: Premier Foods
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