Princes is set to shut its Chichester manufacturing site as part of sweeping changes aimed at tackling “unprecedented” market conditions.
The company has “commenced a consultation with employees” and plans to close the Terminus Road site, which manufactures food products in cans, jars, pouches and microwavable pots, by the end of 2020, it confirmed this week.
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The closure of the Chichester plant, which Princes acquired in 2002, is part of a wider restructuring of the company’s UK manufacturing operations. It is also investing in a new production line for canned ready meals at its Long Sutton site, as well as a new raw materials warehouse and a new processing kitchen.
“This is not a course of action that has been taken lightly,” said a spokesman. “We face unprecedented market conditions and it is crucial that we make significant changes to our operations to future-proof our business.
“This will be a very concerning time for all those that will be affected by this announcement and their families, and we will be supporting them through this difficult period.”
Princes saw volume sales plummet by 20% last year, dragging its value down 13.8% to £146.2m [Nielsen 52 w/e 30 December 2017]. The company, which has seen margins squeezed by surging commodity costs, has also struggled to maintain shelf space amid ongoing own-label expansion in the mults.
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