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Hall's meat factory to be closed

Oct 5 2012

 

The owner of a troubled meat processing plant which employs 1,700 people has said it has no alternative but to begin its closure.

Food group Vion, owner of Hall's of Broxburn, said it has been "unable to identify any viable alternative to the closure of the plant".

Vion UK chairman Peter Barr the plant would require "enormous" investment to match "larger and more competitive plants across Europe".

But politicians accused Vion of "stringing everyone along", knocking back viable options, putting its "self-interest ahead of the workforce" and being "intent on closing the plant no matter what".

Mr Barr said: "We have done everything in our power to avoid having to take this extremely regrettable action but we have been unable to identify any viable alternative to the closure of the plant. Unfortunately, the unsustainable losses which the plant continues to suffer, combined with the challenging economic conditions across all food sectors, have left us with no alternative."

The tens of millions of pounds invested in the site over the years has been unable to stem its "unsustainable losses", he said, adding that the plant's layout is "outdated and inefficient" and there is an "over-capacity in the marketplace" for its produce.

"While some efficiency improvements have been identified, they are not nearly enough to bridge the very considerable losses which Hall's continues to incur.

"We explored the feasibility of undertaking a major overhaul of the site. However, the investment required to deliver a facility capable of competing with much larger and more competitive plants across Europe would have been enormous. In the current environment that level of expenditure is not an option."

Vion is still working to find a potential new owner but Mr Barr warned that if a solution cannot be identified, a phased closure of the site will begin later this month, with an anticipated full closure by February.

Finance Secretary John Swinney said the Scottish Government and its agencies have done all they can to secure the future of the plant, and are still working to secure a buyer. "All possible support will be made available to staff. Teams have already been on site and resources are in place to help people who are looking at their options for the future. We will also work to address the serious potential impact on the local area," he said.

 

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