Nestlé's Halifax factory would take on the largest portion of the Fawdon site’s current production under the proposed changes.
Nestlé has announced plans to close its factory in Fawdon, Newcastle, as part of a broader set of proposed changes to its UK confectionery manufacturing.
The planned changes – which aim to create a more efficient manufacturing footprint – put 573 roles at risk.
Nestlé says that it is announcing the proposals – which also include a total £29.4 million investment at its factories in York and Halifax – “as early as possible” in order to provide the maximum time for consultation with employees and trade unions.
Under the plans, production at Fawdon would move to other, existing Nestlé factories in the UK and Europe, and the site would close towards the end of 2023.
Meanwhile, Nestlé would make a £20.2 million investment to increase KitKat production at its York factory and modernise the site.
The company’s Halifax factory would receive a £9.2 million investment, which would help equip the factory to take on the largest portion of Fawdon’s current production.
Nestlé says that its Fawdon factory is home to many smaller, low-growth brands and employs a diverse and complex mix of production techniques, while its factories at York and Halifax have clearer specialisms and manufacture some of the company’s biggest brands.
If the proposals go ahead, Nestlé expects to be manufacturing a higher volume of products overall in future, while operating a smaller number of factories.
The company said in a statement: “We believe that the business case behind these proposed changes is compelling and, ultimately, the best way to keep our business competitive in the long term.
“Nevertheless, we very much regret the uncertainty this announcement will cause our people and their families and we want to make sure they are supported throughout this process. There is now the time and the space for all parties to engage in a constructive consultation around today’s proposals and we welcome those discussions.”
Last month, Nestlé announced a proposal to cease confectionery production at its Wiri factory in New Zealand.
© FoodBev Media Ltd 2020
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