Swedish fats and oils specialist AarhusKarlshamn (AAK) is mulling the closure of a UK manufacturing site as it looks to rationalise its operations and drive future growth in the market.
The company has entered into talks with workers over the proposed closure of its Oldham site, which supplies fats to bakery and confectionery manufacturers.
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Fifty-two people are employed at the Oldham facility, which is likely to close in 2012.
Commenting on the news, AAK UK HR manager Les Bales said that it was not yet clear how many jobs would be lost.
“This is a consultation process and we are looking at all solutions,” Bales told just-food today (24 May). “Worst-case scenario, we are facing about 42 redundancies. But we are looking to redeploy our people in Oldham.”
According to AAK, the move comes as part of a wider strategic review designed to drive growth at the business.
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By GlobalData“The site closure at Oldham is just part of that business review. What we are trying to do now is focus all our manufacturing at one site, which will be Hull. We are now looking to strengthen our NPD… and marketing team. This is very much about building our business for the future,” Bales insisted.
The company plans to invest GBP850,000 (US$1.4m) to develop its facilities and expertise at Hull, in addition to a recent investment of GBP4.5m to add two production lines.
