Pilgrim’s UK has announced the proposed closure of its Ashton-under-Lyne site, putting 542 workers at risk of redundancy.
The closure is said to be part of Pilgrim’s UK’s ongoing footprint review to ensure it has the best structure for long-term growth and development, and for mitigating the current unfavourable market conditions in the UK.
It has proposed closing the site and transferring existing operations to its facilities in Spalding, Westerleigh and Bromborough, which would create 90 additional roles.
“The decision to propose the closure of our Ashton site has not been taken lightly and we have made every effort to explore alternative options,” said Rachel Baldwin, vice president of human resources, Pilgrim’s UK.
“A key part of our work to return to growth includes ensuring we fully optimise our operational footprint, and the age and location of Ashton within a densely populated area means that there is no feasible opportunity to modernise or grow the site,” she added.
“As a result, these proposals are unfortunately essential to ensure a sustainable future for our team members across the UK.”
Questions over Ashton’s viability were first raised in April 2021, when the JBS-owned pork giant announced it was implementing a three-day week in response to the ongoing disagreement between the UK and China over pork export licences.
The pork sector has continued to face significant challenges, with the UK sow herd down around 15% and loss-making farmers leaving the industry due to high production costs and lower pig prices, the business said.
At the same time, an increasing and ongoing reliance in the UK on cheaper, lower welfare imports from the EU and post-pandemic recovery challenges within certain markets had negatively affected UK production, it added.
The initial phase of Pilgrim’s footprint review included the closure of its Coalville site and the imminent closure of the Bury St Edmunds site, as well as the introduction of a four-day week at Ashton in September 2022.
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