Belgian meat to ready meals group Ter Beke is to close production at its Alby-sur-Chéran ready meals factory in France.
In a trading update today (10 May), the company said it had informed the works council at the Haute Savoie-based facility on 5 April of its intention to terminate production at the site. The factory employs around 40 staff.
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Ter Beke said a reorganisation of group operations in 2008 led to an examination of “all possible routes” to make the operations at the French facility profitable.
However, it added: “None of the routes investigated have led to the desired result. In conjunction with the works council, the decision has been made to shut down industrial activity at Alby-sur-Chéran no later than 30 June 2012.”
The company said it will retain its commercial activities in France through production at its Belgian sites in Marche-en-Famenne and Wanze.
“The costs involved in terminating industrial activities at Alby-sur-Chéran will have a negative influence on the group results for the first half-year,” the company said as it released its first-quarter results.
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By GlobalDataThe group said it realised an increase in turnover in the first three months of the year compared to the same period in 2011. This was primarily driven by sales increases in its ready meals and processed meats divisions.
However, high raw material prices and a change in the mix of products sold, combined with investments in its Come a Casa and Oligusto brands during the quarter, did not result in an increase in operating profits, the firm said.
“The overall economic climate caused a change in the mix of products sold, where we see sales of the more profitable products declining in favour of less profitable products,” the company said.
The company added that the effects and investments made during the quarter and the costs involved in terminating operations at its French plant, will have a “negative influence” on first-half results
Nonetheless, it added: “The group remains confident that, save for unforeseen market conditions, over the full year 2012, results can be improved.”
Click here to view the full announcement and trading update.
