Cereal Partners United Kingdom & Ireland (CPUK&I) is consulting colleagues over plans to close its factory in Bromborough, Merseyside, following a “significant decline” in breakfast cereal sales.
The factory currently manufactures Cheerios, as well as rice crispies and corn flakes for supermarket private labels.
Under the proposals, production of Cheerios will transfer to Staverton in Wiltshire, and CPUK&I will cease its supermarket branded cereal business at the end of its current contracts.
The business plans to invest £74m into expanding the capability of its Staverton factory, creating around 60 new roles.
However, the proposed closure of the Bromborough site would put 314 roles at risk of redundancy.
“Both CPUK&I factories are currently below capacity,” said a spokeswoman for the cereal manufacturer.
“These proposals would adjust CPUK&I’s manufacturing footprint to better match demand and simplify our portfolio to focus investment on our branded cereals.
“Sales of breakfast cereal are in significant decline owing to the changing habits of UK and Irish consumers and greater competition from alternative breakfast options.
“CPUK&I regrets the potential impact on employees and the immediate priority is to work together to review the proposals while supporting people through this process with care and sensitivity.”
CPUK&I was “open to alternative solutions, including a potential sale of the Bromborough site”, the spokeswoman added.
GMB regional organiser Matt Denton said this was “a deeply worrying time for GMB members and their families”.
“For three decades, CPUK has been at the heart of this community, providing good jobs and supporting countless businesses.
“GMB will fight to protect jobs, secure fair treatment for workers and explore all potential options to mitigate the impact of this closure.”
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