Premier Foods plc has confirmed that it plans to introduce automated technology at its Hovis bakery in the UK town of Avonmouth, with job losses expected.
Describing the move as a “vote of confidence” in the site, a spokesperson for the UK’s largest food group insisted that the investment will result in “better quality, reduced waste and improved customer service”.
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“These investments in new equipment and processes will be supported by investment in skills training among the workforce although, regrettably, the planned changes will result in a reduction to the number of manufacturing jobs at the site,” the spokesperson said.
While Premier insisted that it is too early to say how many jobs are threatened, the company confirmed that it has entered into formal consultation with Avonmouth employees and their representatives.
The company’s investment in the site is thought to total in the region of GBP5m (US$8.1m).
Premier, which also makes brands including Bisto gravy and Mr Kipling cakes, has focused recent investment on building its brands and stripping costs out of the business, while also making a select number of disposals to pay-down debt and deleverage the company.
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By GlobalData
