UK: Vion reaffirms Hall's site closure

By Michelle Russell | 16 October 2012

  •  Vion confirms closure of Hall's of Broxburn site
Vion chairman Peter Barr said that neither of the offers provided a guarantee of ongoing employment

Vion chairman Peter Barr said that neither of the offers provided a guarantee of ongoing employment

Dutch meat group Vion has reaffimed that its Hall's of Broxburn processing facility will close, with none of the bids received having provided a "viable alternative".

In a letter to workers earlier this month, Vion said it was still in talks with interested parties over the potential sale of the site, where 1,700 people are employed. However, it added that if a "sustainable solution" could not be found the company would commence a phased shutdown process later this month.

In an update today (16 October), Vion said that, having reviewed two offers over the weekend, it had been "forced to conclude" that neither of the proposals constituted a "viable and sustainable alternative" to the proposed closure of the plant.

Vion chairman Peter Barr said that neither of the offers provided a guarantee of ongoing employment for the workforce, despite its offer of "substantial financial assistance" to support an acquisition.

"This is a very sad day for the company but, unfortunately, the plant continues to suffer unsustainable losses of GBP79,000 a day," Barr said. "Consequently, it is with great regret that we can confirm that it is our intention to proceed with plans for a phased closure of the plant.

"As previously outlined, this will mean that some areas will cease production later this month with full closure expected to take place by February 2013."

Show the press release

VION Hall's Update Statement
16 | OCT | 2012
VION UK chairman Peter Barr said: "As we announced last week, the company received two offers for the Hall's of Broxburn site prior to Friday's deadline."

Regrettably, having reviewed both offers over the weekend we have been forced to conclude that neither of these proposals constitutes a viable and sustainable alternative to the proposed closure of the plant.
In neither instance were we assured that either offer provided a guarantee of ongoing employment for the workforce, in spite of the fact that VION was prepared to offer substantial financial assistance to support the acquisition. This is a very sad day for the company but, unfortunately, the plant continues to suffer unsustainable losses of £79,000 a day. Consequently, it is with great regret that we can confirm that it is our intention to proceed with plans for a phased closure of the plant.

As previously outlined, this will mean that some areas will cease production later this month with full closure expected to take place by February 2013. We have already had detailed discussions with our employees and their union representatives to brief them fully on details of the enhanced redundancy terms on offer to them and to outline our plans to support them in the coming months.
We would again like to record our appreciation of the efforts which the Scottish Government and the Task Force have made to support us over the last three months during the consultation process.

 

Original source: Vion

Sectors: Meat & poultry

Companies: Vion

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