Closure of one of the major UK lamb killing and packing plants, the Anglo Beef Processors Bathgate abattoir in southern Scotland, has been postponed. But Irish-owned ABP dismissed initial rumours of a management buyout or sale. Bathgate had been due to shut on Monday [April 10], its demise reflecting severe financial pressures on the lamb processing sector attributed to BSE related carcase handling costs, the strength of sterling squeezing margins on continental sales of British sheepmeat, and competition from live exports. The last-minute stay of execution did not surprise industry insiders. Necessary restructuring of the meat processing sector is notoriously difficult because unviable plants will often attract optimistic bidders who entrench surplus capacity by seeking overlooked cost savings or potential customers. However, The Grocer was told on Tuesday ABP had not been approached to sell Bathgate. "The consultation process with staff has been extended by four weeks," said the company, and managers had suggested possible solutions to some of the cost problems. The denial did not halt sale rumours. {{MEAT }}

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