16th Aug 2007 09:30
Tate & Lyle PLC - 16 August 2007 Astaxanthin Partners Ltd to cease Astaxanthin production at Selby facility. Tate & Lyle announces today that Astaxanthin Partners Ltd, its joint venturewith Igene Biotechnology Inc., intends to cease production of Astaxanthin at theTate & Lyle site in Selby, North Yorkshire. Additionally, Tate & Lyle is indiscussions with its joint venture partner concerning Tate & Lyle's exit fromthis loss making business. Consultation with employees has now begun and will last 30 days. Closure wouldaffect 45 jobs at the Selby site. Subject to employee consultation, it isplanned that Astaxanthin production will cease at the end of September 2007.Tate & Lyle's share of the operating loss of Astaxanthin for the year to 31March 2007 was £3 million. Tate & Lyle's share of cash closure costs areestimated at £3 million. An impairment charge on Tate & Lyle's investment inAstaxanthin Partners Ltd was taken in the financial year to 31 March 2007. Stanley Musesengwa, Chief Operating Officer, said: "The difficult decision tobegin the consultation process follows a full review of the business and itsprofitability for the foreseeable future. This decision is not a reflection ofthe hardworking employees we have at the site and every effort was made tosecure the future of the plant. The business has faced pressures due toescalating raw material prices resulting from changes in the EU Sugar Regime andhigher energy costs. Unfortunately an increasing cost base coupled with afalling selling price means that production of Astaxanthin at the Selby site isno longer commercially viable." Tate & Lyle will help those colleagues potentially affected to seek suitablealternative employment. This will include the provision of on-site job shopfacilities staffed by independent professional counsellors. Notes to Editors Astaxanthin is a nutrient for farm-raised fish made by the fermentation of sugarproducts. For more information contact Tate & Lyle PLC: Mark Robinson, Director of Investor RelationsTel: 020 7626 6525 or Mobile: 07793 515861 Ferne Hudson, Head of Media and Public RelationsTel: 020 7626 6525 or Mobile: 07713 067433 About Tate & Lyle: Tate & Lyle is a world leading manufacturer of renewable food and industrialingredients. It uses innovative technology to transform corn, wheat and sugarinto value-added ingredients for customers in the food, beverage,pharmaceutical, cosmetic, paper, packaging and building industries. The Companyis a leader in cereal sweeteners and starches, sugar refining, value added foodand industrial ingredients, and citric acid. Tate & Lyle is the world number-onein industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose. Headquartered in London, Tate & Lyle is listed on the London Stock Exchangeunder the symbol TATE.L. In the US its ADRs trade under TATYY. The Companyoperates more than 60 production facilities in 23 countries, throughout Europe,the Americas and South East Asia. In the year to 31 March 2007, it employed6,900 people in its subsidiaries with a further 2,300 employed in jointventures. Sales in the year to 31 March 2007 totalled £4.0 billion. Additionalinformation can be found on http://www.tateandlyle.com. SPLENDA(R) is a trademark of McNeil Nutritionals, LLC Copyright Business Wire 2007Related Shares:
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