Monday, 3 May 2021

Nestle Shut Newcastle Factory

 
Nestle has announced plans to cut almost 600 jobs and close a confectionery factory in Newcastle. The world's largest food company wants to close its site in Fawdon by the end of 2023 and focus production on factories in York and Halifax. It said 573 jobs would be "put at risk" by the changes. The GMB and Unite unions said 475 jobs would be lost at Fawdon, where Fruit Pastilles are made, and 98 at the York factory, which produces KittsNestle said it would invest £20m into the York facility to "increase production of KitKat in the city where the brand was first created in 1935". The Fawdon factory opened in 1958 and currently produces 15 brands including Fruit Pastilles, Matchmakers and Rolos. "We do not underestimate the impact that the closure of Fawdon factory would have on the local area and, as part of the consultation, we want to work with the local community to find ways that we can support the area and our employees if these proposals were to go ahead," Nestle said. "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." Councillors have asked the prime minister to help stop the closure or, failing that, provide investment to offset the economic damage. Unions have branded the closure "corporate greed at its worst", while local Labour leaders have vowed to try to save the plant. Newcastle City Council Labour leader Nick Forbes said: "The fight to save Nestle isn't over yet."