A Kerry Group spokesman told FoodManufacture.co.uk that staff were informed last week that the firm was reviewing the future of the Devon-based business (which makes dried and preserved fruits used in confectionery and branded cereals), and began a 90-day consultation with employees today.
"We need to invest for future growth, and we have two UK sites dedicated to this business: Tenbury Wells [Worcestershire], which is quite large and has good scope for further development, and Okehampton that really has no room for expansion," he said.
Best way forward
The spokesman added that if the review decided that if consolidation was the best way forward, then production at Okehampton would be scaled-down from Q4 of 2011 before the site's closure at the end of Q1 2012.
However, he said that Kerry would offer all Okehampton staff positions in Tenbury Wells if production were transfered, as well as financial support to assist relocation, although he recognised that this option might not suit all staff.
Jeremy Filmer-Bennett, chief executive of Devon & Cornwall Business Council, said that the closure was bad news for a town that was recently rocked by other recent job losses in the food production sector.
But he said Kerry was “helpful, positive and wanting to engage” with local groups as it made plans to shut down the site, which lies adjacent to the A30.
“Clearly the impact on a small town like Okehampton is not positive, but the company is very keen to work very closely with our area action force which brings together all the local support organisations to get people re-employed or retrained," he said.
“We’re hopefully meeting the company this week so we can start work with all their staff.”
Recent troubles
In January Robert Wiseman Dairies closed its Okehampton plant, involving 69 redundancies. Weeks later PoleStar Foods laid off 232 workers, although we understand that some have since been re-employed by Devonshire Desserts, which acquired the firm's plant, machinery and freehold.
In March, Browne’s Chocolates axed 20 jobs, although the company’s new owners have since rehired some workers.
Filmer-Bennett said: “Okehampton does have a lot of food-based businesses that have been through some recent troubles, but it is just about recovering – it was beginning to get better.
“This part of the world, the West Country, is home to around 40% of food production in the UK, so there are always jobs in food production and processing coming along. There’s a number of companies growing quite quickly.”
Kerry Ingredients & Flavours is the largest division of Kerry Group, producing over 15,000 ingredients and flavours from more than 113 manufacturing sites across the Americas, EMEA and Asia-Pacific regions.