HP sauce factory in Birmingham to close by March 2007 with 120 job losses

HP sauce factory in Birmingham to close by March 2007 with 120 job losses

	Published : Thu, 24 Aug 2006 11:30 By : David Simms Print this Story

LONDON - The HP sauce factory in Birmingham will definitely close by March 2007, staff at the site have been told. The production will be moved to the Netherlands and result in the loss of 120 jobs.

Unions had mounted strong protest against the move, but said they had given up since Heinz, the owners of the factory appeared to be motivated by "corporate greed." The plan to close the factory was announced in May and following the protests, the US food giant examined all options before deciding to go ahead with the closure.

Heinz vice-president David Hobin said they had no other option. "We deeply regret having come to this difficult but necessary decision which has only been made after careful consideration of all alternatives," he said. "This difficult business decision is no reflection on our employees, who have continued to demonstrate their dedication and hard work throughout these challenging times." He added that they were disappointed not to have found any other alternative.

But unions felt otherwise. John Jordan, T&G's acting national secretary said the Birmingham factory was a profitable venture. "We are deeply disappointed. There's no need for the factory to close. Birmingham is a highly-profitable site and this move is to bail out the factory in Holland," he added. "We will now aim to negotiate the best packages for our members and their families. We would hope the public think again before buying this supposedly British brand."

Nigel Dickie, the Heinz director at UK said it was a sad day for the factory. The move could save the company £25 million over ten years. If sales will drop as it is no longer made in Britain for a British market these savings would however become questionable.