Young's Seafood has outlined plans that could lead to the closure of two processing sites in Scotland – and the loss of over 900 jobs – in the wake of Sainsbury's moving a contract away from the UK group.
The company said the end of the contract in November will leave the facilities in Fraserburgh and Spey Valley "significantly under-utilised".
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It is proposing moving the volumes processed at the plants to three other facilities – in Grimbsy, Livingston and Annan.
The move will leave the business with a "significantly more sustainable manufacturing footprint" than other options. However, Young's admitted the transfer is likely to lead to the Fraserburgh and Spey Valley sites closing, with the loss of over 900 jobs. The company said around 200 posts could be transferred or created at the three other facilities. Formal consultation with staff will start "shortly", Young's said.
Chief executive Pete Ward said: "This process will not be easy, but we have to face some tough decisions and we believe the proposals, outlined today, could deliver a significantly more sustainable manufacturing footprint than other potential consolidation options."
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