Nestlé has announced that it is planning to close a confectionery factory in Newcastle, putting nearly 600 jobs at risk.
The world’s biggest food group, which makes brands such as KitKat and Quality Street, stated that the move was part of a restructuring of its confectionery operations in the UK. It plans to move production to two other plants in York and Halifax, where it will invest nearly £30m, and sites in Europe. The factory in Fawdon, which opened in 1958, is expected to close towards the end of 2023.
Nestlé highlighted that the Fawdon factory is home to many of its smaller, low-growth brands such as Fruit Pastilles, Matchmakers and Rolos, and has a complex mix of production techniques. In contrast, its plants in York and Halifax have clearer specialisms and manufacture some of the company’s biggest brands.
The group revealed that it plans to invest £20.2m in York to modernise and increase the production of KitKat in the city. A further £9.2m will be invested in Halifax to equip the factory to take on the largest portion of Fawdon’s current production.
“Nestlé Confectionery has an ambitious business strategy in the UK and these proposals are intended to support our long-term success in an increasingly competitive category,” the company said.
“The proposed changes would create a more efficient manufacturing footprint and, in turn, allow greater strategic investment in Nestlé’s biggest confectionery brands.”
Nestlé said it did not “underestimate the impact” the closure could have in the area and on its employees, and would find ways to support them if the closure is approved following consultation.
