2nd Jul 2007 14:32
Premier Foods plc02 July 2007 2 July 2007 Premier Foods PLC Completion of UK Manufacturing Review Premier Foods plc ("Premier") announces that it has completed the review of itsUK manufacturing facilities following the completion of its acquisition of RHMon 16 March 2007. The review, which covered Premier's ambient factories, theRHM Culinary Brands factories and the RHM Customer Partnership's LedburyPreserves factory, focused on optimising efficiency across our manufacturingnetwork and providing the capacity to support the continued growth of ourbrands. Premier confirms that the annual cost synergies targeted from both theintegration of Campbell's of £28m and RHM of £85m remain on track. The company is commencing consultation on proposals to close 6 of the 11 sitescovered by the review and invest significantly in the other 5 sites. Proposals include: • Focusing dry food production on three major sites in Worksop (Notts), Knighton (Staffs) and Ashford (Kent); • Focusing preserves and spreads production in Histon (Cambs); • Moving production of chutneys, pastes and cooking sauces to Bury St Edmunds (Suffolk) and foodservice desserts to Knighton (Staffs); and • Closing 6 factories in Bristol, Droylsden (Manchester), Ledbury(Herefordshire), Middlewich (Cheshire), Reading (Berks), and Wythenshawe(Manchester) by early 2009. Consultation on these proposals will begin immediately with affected employees. Robert Schofield, Chief Executive of Premier, said: "Our priority continues to be growing our business and our brands and to do thiswe need to remain competitive in the market place. These proposals will enableus to enhance our efficiency whilst giving us the capability to drive ourbranded sales growth. Our proposals include significant investment in 5 of oursites whilst 6 sites will close. We appreciate the impact our proposals willhave on employees at those sites and we will work with them to exploreopportunities for redeployment within the group or outside of the company." Premier will release its pre-close period trading update for the 6 months to 30June 2007 together with RHM's results for 2006 restated in line with Premier'saccounting policies and reporting calendar at 7am on 9 July 2007. Premier Foods plc Tel: 01727 815 850Paul Thomas, Finance DirectorRobert Lawson, Director of Mergers & Acquisitions and Investor RelationsGwyn Tyley, Director of Investor Relations Citigate Dewe Rogerson Tel: 020 7638 9571Michael BerkeleyJustin GriffithsNicola Smith This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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