The merger will initially see Scotch Premier and Mathers combine operations at the current Scotch Premier plant in Inverurie in a bid to maximise efficiency.
As well as consolidating the Scotch Premier and Mathers businesses, a £10M modern meat processing facility is planned for the Thainstone Agricultural Centre, near Inverurie.
Robbie Galloway, managing director of J.W Galloway, who own Scotchbeef, supported by ANM Group chief executive Pat Machray and Mathers’ md, Michael Mountford, will lead the enterprise.
Galloway said: “To ensure sustainable business, efficient facilities are a prerequisite. The interim consolidation of Scotch Premier and Mathers, which we will oversee, into one facility at Inverurie followed by the relocation of the business to a new state of the art facility at Thainstone will provide that and a platform for growth.”
“Biggest agricultural hub in Europe”
The site is the current headquarters of the ANM Group, which owns Scotch Premier.
Bob Dow, communications manager at ANM, told FoodManucature.co.uk, the new site would be the “biggest agricultural hub in Europe”, will ease the “recognised problem of over capacity in many facilities and improve efficiency.”
Dow added: “With the state of the UK meat industry the way it is, people are currently looking for a way to battle against the challenges in front of them.
“For three of the biggest meat processors to merge together makes perfect sense.”
A period of consultation with the 230 employees at Scotch Premier and Mathers will be carried out with the intention to retain as many positions as possible.
But it is likely that that there will be some job losses.
The new site will have the capacity to slaughter 700 cattle a week.
That is the same amount currently being slaughtered between Scotch Premier and Mathers each week.
Scotbeef, which currently has revenue of £220M compared with revenue of £50M for Scotch Premier and £39M for Mathers, will be the majority shareholder.
Bob Dow said that the merge should see exports rise by a “substantial” amount.
“55% of Scotbeef’s revenue is made from exports, for Mathers and Scotch Premier it is much smaller, not even worth mentioning, so this merge will allow exports to grow substantially.”
“Strategic vision”
Planning permission it currently underway and is expected to take a year, with the construction of the facility expected to take a further year to complete.
Richard Lochhead the Scottish government’s cabinet secretary for rural affairs and the environment said the three businesses should be “commended for their strategic vision”.
The Scottish government will work with the companies to support the development, he added.
Lochhead added: “I am delighted to hear about these welcome plans to secure meat processing at Thainstone which I’m sure will be good news for farmers and the wider community.”