Castle MacLellan Foods, the UK business owned by Norway’s Kavli Group, has announced potential lay-offs at a factory in Scotland.

The pâté producer has blamed a “changing and challenging market” for its decision to implement changes at the Kircudbright facility where it employs 105 people.

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In a statement the company said: “Castle MacLellan can regretfully confirm that, following a difficult 2018 which saw a decline in sales as a result of a changing and challenging market, it has proposed a number of operational changes to its business, including potential colleague redundancies and changes to working patterns.

“At this stage, no final decisions have been made and Castle MacLellan will be consulting both the Works Committee and its colleagues to seek ideas and ways of reducing the likelihood of compulsory redundancies, including part-time job sharing and voluntary redundancies.

“While Castle MacLellan is incredibly disappointed to have to consider taking these steps, it will continue to invest in new product development and automation projects to ensure it is in a stronger position after this difficult period.”

Elaine McConnell, general manager at Castle MacLellan, added: “This has not been an easy proposal to make. 2018 was a very challenging year both for the business and the market, and in order to build the business back to full strength, we have to put a plan in place. 

“It’s important to reiterate that no final decisions have been made and we welcome any ideas our colleagues have as we begin consultations over the next few weeks.”

Products made at Kircudbright include Smoked Salmon Pâté, Roasted Mushroom Pâté and Smoke Duck Pâté. 

Castle MacLellan’s parent, Kavli Group, is also the owner of the Primula Cheese brand.