Masterfoods Europe is to axe 700 jobs in the UK - 500 of which will be from one of its factories in Slough.

Production at the Berkshire plant, which produces Twix, Minstrels and M&Ms, will be phased out over the next two years.

The UK job losses are part of an overall restructure of Masterfoods western European operations, with a further 120 German and 250 French redundancies on the cards.

The announcement came as a disappointment to Frank Loveday, regional officer of the Bakers, Food and Allied Workers’ Union, which represents many of the 1,600 factory workers in Slough.
“Our manufacturing costs are too high and the jobs will be going overseas. It’s always very sad when UK jobs go, especially when the factory is performing satisfactorily,” said Loveday.

“It’s been a bitter-sweet announcement. There will be those who will want to take the redundancy pay but others who were loyal to the company and in it for the long-term. At least they will have until Decemeber 2006 to find another job.”

President of Masterfoods Europe, Pierre Laubies, said that today’s announcement was all about growth and competitiveness, and to create a business that had the dynamism of a small business with the benefits of international scale.

He added: “All the arrangements we propose for associates [employees] to achieve these necessary major changes will be fair and consistent with our record and reputation as a leading and responsible employer.”