CADBURY POLE AXES 200 BOURNVILLE JOBS

03-10-2007

Cadbury is axing 200 jobs over the next three years at its traditional Bournville base - around 10% of the workforce - as part of a plan to expand production in Poland.

Another 500 jobs will go when the company closes its factory at Keynsham near Bristol.

The company has been under pressure to cut costs for several months from US "shareholder activist" Nelson Peltz, who was also implicated in Heinz decision to shut the historic HP Sauce factory in Aston (see link here)

In the summer, it announced plans to end production in Manchester and Chesterfield as part of an attempt to save £400 million (see link here)

By way of compensation, the company has promised an additional £40 million investment in Birmingham, damping down fears of a wholesale closure.

MP Lynne Jones whose Selly Oak constituency includes Bournville said: "Obviously I'm disappointed but I suppose this is inevitable.

"I had a meeting with their External Affairs Director in July, and I'm confident that the long term future of Bournville is secure, but with fewer employees.

"They are looking for efficiencies but they've got a good strategy on the chocolate side and assure me they intend to develop Bournville as a centre of chocolate making excellence."

Cadbury MD Trevor Ford insisted: "our ongoing commitment to manufacturing in the UK is absolute. Our significant investment in Bournville is testament to that."