Valeo Foods is to shut its UK confectionary facility in Pontefract, West Yorkshire.
In a statement, the Ireland-based group said it had notified staff of its decision to move production at the site to other locations and wind down operations over the next year.
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The move follows what the company described as “a strategic transformation review” of its confectionery operations aimed at improving performance of the business.
Valeo confirmed to Just Food that 134 positions are at risk of redundancy out of the 196 people employed at the site.
The group’s Pontefract location produces the Barratt brand’s Anglo Bubbly bubblegum, as well as varieties of liquorice, sherbet, gummies and other confectionary.
“The initiative is designed to strengthen Valeo’s position as a leading private label confectionery supplier, improve operational efficiency and support the continued growth of its portfolio of market-leading brands,” the company said in its statement.
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By GlobalDataCommenting on the decision, CEO of Valeo’s UK business Kevin Moore said: “This is not a decision we have taken lightly and we fully recognise the impact it will have on our team and the wider community in Pontefract.
“Every possible option to continue manufacturing at the site was carefully reviewed. However, the level of investment needed to make the site competitive and sustainable long-term was found to be unviable, particularly given its proximity to other Valeo facilities in the UK.”
The transfer of manufacturing activity to other Valeo sites and the relocation of office-based employees will proceed under a phased closure plan in the coming months.
Moore added: “Collective consultation with employees and their representatives has now concluded and we will continue discussions on an individual basis regarding relocation, redundancy and outplacement support.”
According to the website of Valeo’s UK business, the company manages ten manufacturing plants in the country.
