London-based Young’s Seafood announced today that it was considering closing two of its processing sites in the wake of losing a key contract with retailer Sainsbury’s, which will cost more than 900 workers their jobs.
In a statement, the company announced it was going to “start formal consultation shortly with staff and their representatives” at its Fraserburgh and Spey Valley locations “to explore proposals and possible options.”
“Today’s announcement does not reflect on the skilled teams at Young’s Fraserburgh and Spey Valley, who are committed, dedicated and continue to work hard through this time,” said Pete Ward, Young’s CEO. “This process will not be easy, but we have to face some tough decisions and we believe the proposals, outlined today, could deliver a significantly more sustainable manufacturing footprint than other potential consolidation options.”
On 23 June, the company announced it had lost its Sainsbury’s fresh and smoked salmon contract to Norway-based salmon farmer Marine Harvest. That loss, the company said today, means the Fraserburgh and Spey Valley sites will be “significantly under-utilized.” The company is proposing to integrate any remaining customer contracts and processing volumes from the two sites into its Grimsby, Livingston and Annan locations.
The company said “it is likely” this move could lead to both sites being closed in or after November 2015. While the company estimated approximately 200 jobs could be transferred to the company’s other locations, it also estimated closing the Fraserburgh and Spey Valley sites will lead to the loss of more than 900 jobs.
