Vegetable supplier Produce World Group has announced the closure of its Butterwick and Swinderby plants in the UK.
The closures have arisen from the decision to form a joint venture with Lincolnshire Field Products, to grow, harvest, pack and market produce. The joint venture will be located in Wykeham outside Spalding.
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Butterwick employs 250 full time staff while 90 are employed at Swinderby.
The group said around 60 jobs would be created as a result of the joint venture.
Production from Butterwick will be transferred to Wykeham. Swinderby's closure will see additional processing and storage facilities for root vegetables created at a site in Isleham.?
Produce World Group executive chairman Neil Fraser said: "At Produce World we are growing our business and developing a structure which will enable us to meet the current and future challenges in the industry. We are operating in a low margin business and more consolidation across the industry is inevitable. At the same time our customers are experiencing a period of unprecedented competition and changing consumer shopping habits.
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By GlobalData"We have acted to ensure we can meet these challenges and make the Produce World Group sustainable for the future. We are committed to the long-term for the business and for fresh vegetable growing in Lincolnshire and across East Anglia."
