6th Nov 2009 14:40
IMMEDIATE RELEASE 6 November 2009
A.G.BARR p.l.c.
Manufacturing Investment, Supply Chain Restructuring and Site Rationalisation Proposals
A.G.BARR p.l.c., the soft drinks group, today announces the following initiatives:
Manufacturing Investment
Following a comprehensive review of future capital requirements and overall site operating costs, it is proposed to invest £8-£10 million over the next twelve months to increase capacity at the Cumbernauld site. This investment would create operating capacity at the Cumbernauld site that would absorb all current PET packaged products from the Mansfield factory and allow for forecast future growth.
Supply Chain Restructuring
As the final step in the integration of the Rubicon business and to allow for future growth, it is proposed to commence discussions with third party logistics companies with a view to establishing a third party operated central distribution hub for the south of the country. This proposal would mean ceasing our current inhouse storage and distribution operations at the Mansfield site and the exit from existing Rubicon third party logistics operations.
Mansfield Site Closure Proposal
The Company has today entered into a consultation process with employees with a view to closing the Mansfield site in early 2011 and the commencement of outsourced logistics activity during the course of 2010.
There are currently 98 employees employed across production and logistics at the Mansfield site and in addition a small number of further employees will be impacted by these proposals.
Further information on the financial impact of the proposed changes will be given at the conclusion of the consultation process.
For further information, please contact:
A.G.Barr Tel: 01236 852400 Buchanan Communications Tel: 020 7466 5000
Roger White, Chief Executive Tim Thompson / Nicola Cronk
Alex Short, Finance Director
Related Shares:
Barr (A.G.)