Dairy Crest closes Fenstanton plant with loss of 248 jobs
Milk processing at the site ended earlier this week (January 8) and clean-down staff are expected to complete their activities by January 25 2013.
The processor said a phased reduction of the cold store and transport activity at Fenstanton would end by March 2013.
During the Christmas period, 73 staff were retained at Fenstanton to ensure operations continued normally.
‘Reinvest in our other sites’
A Dairy Crest spokesman said: “The decision [to close the plant] was not taken lightly, but we believe the restructuring of our dairies business is the right decision for the long-term future of Dairy Crest and will enable us to reinvest in our other sites.”
The firm said it had offered “a package of support” for all employees who have been affected by this closure. While talks are continuing, so far over 80% of the former employees have found alternative employment, education or retired.
Dairy Crest said it had found internal employment for a number of these staff.
Advertised as a former dairy production site
Fenstanton has been advertised as a former dairy production site. The firm said no decisions have yet been taken about its future and the processor planned to work closely with the local council.
Last April, the firm revealed plans to axe 500 jobs at two of its UK dairies – Fenstanton and Aintree – coinciding with the loss of a key liquid milk contract with Tesco.
Last month, the processor reported adjusted profit before tax of £19.1M for second half ended September 30, compared with £22.9M for the same period of the previous year on sales of £688.2M (£739.1M).
Half-year net debt was £75.8M, compared with £365.3M in 2011.
Meanwhile, last July, Dairy Crest sold its French spreads business, St Hubert, to Montagu Private Equity for £344M (€430M).
Speaking at the time, Damian McNeela, analyst with Panmure Gordon, said: “We think that this is a good result, albeit just outside the bottom end of our £350M to £400M valuation range. As a reminder, St Hubert was acquired in January 2007 for about £248M.”
The proceeds of the transaction were expected to be used to reduce net debt.
