The food manufacturer said it was consulting with staff over the site closure, after it revealed plans to cease production at the factory on Bevan Way, Alpha Business Park.
A 2 Sisters Food Group statement read: “We can confirm we are consulting with colleagues about a proposal to cease production at our poultry processing site in Smethwick, and as a result the site could close.
“The factory is ageing and has significant challenges to meet the standards required by ourselves and our customers.
‘Offer affected colleagues up to 200 roles’
“We do not take this decision lightly and fully understand the impact if this proposal goes ahead. This is why we will offer affected colleagues up to 200 roles currently at our West Midlands locations, which we will convert from agency to permanent roles.
“In addition, we will also seek redeployment of colleagues to our other sites in the West Midlands and the wider Group.”
2 Sisters – owner of the Goodfella’s Pizza and Fox’s Biscuits brands – said it would work to ensure options for staff were fully explored before any final decision would be made about whether to close the factory.
Exclusively a chicken cutting processor
The site is exclusively a chicken cutting processor. It supplies retailers, other manufacturers, and other 2 Sisters sites.
The planned factory closure came two weeks after 2 Sisters reported a 17.8% fall in like-for-like operating profits in its second-quarter trading update. The manufacturer’s ceo Ranjit Singh blamed the profit drop on currency fluctuations and the “very tough” trading environment.
2 Sisters said it anticipated further challenges in the remainder of the year, although there was positive moment throughout the business.
Meanwhile, in November 350 jobs were put at risk at 2 Sisters-owned St Merryn Food Group in south Wales. 2 Sisters wanted to cut a third of the factory’s workforce after planning to close the retail packing department at the site, and move it to the company’s Cornwall site.
2 Sisters’ planned job cuts – at a glance
- 630 jobs at risk at chicken processor in Smethwick
- Planned to close the “ageing” site
- Staff might be redeployed elsewhere in the company