Uniq has lodged a planning application to extend its Smedleys Salads factory at Pinchbeck in Spalding, Lincolnshire, in a move that could see up to 80 new jobs.
Smedleys Salads' md Steve Woolley said: "We hope to expand our product range. The new capacity would allow us to increase site turnover."
The news was announced as parent company Uniq revealed details of a dramatic turnaround at its Minsterley desserts factory in Shropshire, where losses have been significantly reduced in recent months. The site had cut overheads, increased productivity and machine efficiency and simplified recipes, said chief executive Geoff Eaton.
Low-volume unprofitable lines had been axed, a new shift pattern introduced and labour efficiency improved, he added. "We've also seen big improvements in materials costs and distribution costs as a percentage of sales. By the final quarter, we should meet our target of a break-even run rate."
Uniq had plugged its pensions deficit with the proceeds of the sale of its French spreads and Belgian salads businesses, said Eaton. He called it "a totally different company to the one last year, with a strong balance sheet and good growth prospects"
Uniq made a £3.7M pre-tax loss on sales up 4.2% to £360.3M in the six months to June 30. However, largely thanks to the Minsterley turnaround, the UK business notched up operating profits of £1.1M in the second quarter compared to a £4M loss in the first quarter, said Eaton.