The Seafood Company has entered a 90-day worker consultation over proposals to close its Strathaird Salmon production site in Inverness, Scotland, with the loss of 354 jobs.
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The Foodvest-owned seafood group said production would be transferred to its operation in Fraserburgh, Scotland.
If the move goes ahead, the Strathaird will be shuttered in August next year.
The company said that the decision to close the plant was part of a full review of its manufacturing facilities being undertaken in a bid to consolidate production.
Stating that the move was a response to the wider economic climate and rising energy costs, a spokesperson for the company declined to comment on the possibility of more cutbacks.
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By GlobalDataThe spokesperson told just-food that the Inverness facility was chosen to close as it was in need of “considerable” capital investment.
“In the current economic climate, with the costs of running our business increasing by over GBP900,000 (US$1.3m) year-on-year and a need to make over GBP7m worth of capital investment over the next five years, we must consolidate our operations to secure the long term growth and profitability of the business and to safeguard the future for our employees in Scotland,” Iain Herd, managing director at Strathaird Salmon, said.
