European convenience food group Uniq has said that it is considering closing one of its UK desserts facilities in a drive to increase profitability.
The company said that it has commenced a consultation process with employees about the possible closure of its Paignton factory – 390 jobs are at risk.
Were the factory to close volumes would be moved to its Minsterley facility, Uniq said.
In order for Uniq’s desserts business to recover from its current loss-making position the group said it needs to reduce capacity and restructure the business.
“We will focus our desserts business at the Evercreech and Minsterley production sites,” a spokesperson for the company told just-food today (28 April).
It is hoped that these measures will generate profitable long-term growth, the spokesperson added.
Providing an update on its supplier review with Marks & Spencer, Uniq said that it has reached an agreement with its largest customer “in fish”. The company declined to reveal what fish products it will supply, but said that talks with M&S regarding further opportunities are ongoing.
Group sales for the first three months of 2008 were up 0.8% on the comparable period of 2007. This result is in line with expectations, the company said.