Dutch meat supplier Vion has announced it wants to quit the UK, a market it has said suffers from over-capacity and “extremely challenging” trading conditions.
Vion said today (19 November) it is already in “detailed discussions with a number of interested parties, including management” over the acquisition of parts of its UK business.
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“These are progressing well,” Vion chairman Peter Barr said. “The level of interest in the businesses has been strong and we hope to be in a position in the near future to give further details about the progress which has been made. The sale process will be completed in a smooth and orderly fashion to ensure business continuity for our employees, agricultural and other suppliers and our customers.”
Vion, which entered the UK in the late 1990s, employs 13,000 people at 38 sites in the country.
However, parts of its business in the UK have faced problems. In July, Vion announced it wanted to close its loss-making Hall’s of Broxburn plant in Scotland amid over-capacity in the UK meat sector.
Last month, despite talks with the Scottish government, Vion confirmed it would close the facility despite takeover interest, a decision that proved controversial.
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By GlobalDataVion said none of the bids it received for the site provided a “viable alternative” for the plant. However, a bidder for the Hall’s factory accused Vion of being “far from honest” and had asked for too high a price. Vion said the critical suitor, Graf Mortgage Corp., was “not a credible bidder”.
Vion said today it wants to focus on its “core” operations in the Netherlands and Germany, as well as developing its ingredient business.
