UPDATE: UK: Premier mill closure will not impact Hovis volumes
Hovis production not impacted by mill closure
Premier Foods' closure of a flour mill in Glasgow will not impact volumes at its bakery business, which manufactures Hovis bread, a spokesperson for the group insisted today (11 January).
The closure will impact 15 workers. Consultations are beginning and the company hopes to redeploy employees to "other facilities in the region", the spokesperson added.
Commenting on the mill closure Bob Spooner, bread and supply chain director, insisted it was a necessary step to "build a more sustainable milling business". The company said the move would help reduce excess milling capacity and build value in its bread operations.
Profitability at Premier's bakery unit has been placed under pressure by structural issues in the UK bread sector, which is marked by oversupply and high levels of promotional activity.
In a bid to improve margins, Premier is working to strip costs out of its bakery operations. In recent months, the company has announced around 900 job cuts as part of a range of measures to reshape its bread business. These initiatives have included the closure of two bakeries, reduction of distribution routes and a revamp of its logistics operations.
The spokesperson declined to comment on the financial details of the closure, including how much Premier expects to generate in savings. It is unclear whether Premier plans to sell the Glasgow site.
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