Nestle to Restructure UK Coffee Factories

The Hayes factory plays a vital role in NESCAFÉ production. However, it is not feasible to redevelop the Hayes site to create the manufacturing facility Nestlé UK needs for the future.

Jan 17 2012 --- Nestlé UK has unveiled proposals for a further £200 million extension to its NESCAFÉ factory in Tutbury, Derbyshire.

This is a new stage in the transformation of the Tutbury factory, in addition to the £110m extension to the NESCAFE DOLCE GUSTO facility at the site announced in November 2011. 

For the first time in the UK all forms of coffee production including freeze dried, spray dried and pod technology, would be brought together on one site.

It is proposed that production at Nestlé’s coffee factory in Hayes will transfer to Tutbury, leading to the eventual closure of the Hayes site in 2014.  The Hayes factory plays a vital role in NESCAFÉ production.  However, it is not feasible to redevelop the Hayes site to create the manufacturing facility Nestlé UK needs for the future.

The proposal has been shared with the company’s 230 employees at Hayes and full consultation will now take place. 125 new jobs will be created in Tutbury through the announced transfer of production. This is in addition to the 300 new jobs in Tutbury announced in November 2011.

Paul Grimwood, Chairman and CEO Nestlé UK & Ireland said: “Over the next three years, we are investing £500m to establish our next generation of world class manufacturing facilities in the UK.  The proposed restructuring announced, which will bring all our coffee manufacturing together at Tutbury, is a key part of this overall investment programme.”

“Our employees at Hayes make an outstanding contribution to our Nescafe business, and the factory will continue to play a vital role through to 2014.  We are creating over 400 coffee manufacturing jobs at Tutbury and we will therefore have alternative jobs to offer our 230 employees in Hayes.  We hope that as many of our employees as possible will remain with us at Nestlé.”

Over the past five years Nestlé has undertaken a multi-million pound investment programme, establishing our next generation of world class competitive manufacturing facilities in the UK. 

This investment programme includes:
• £200 million spent transforming our major confectionery factory in York to create a best in class manufacturing facility
• creating a £40 million European centre of excellence for NESCAFÉ Cappuccino in Dalston, Cumbria
• establishing a £20 million  seasonal confectionery manufacturing centre in Halifax
• building a new £35 million bottling plant in Buxton that will be one of the most environmentally sustainable operations of its kind in the world when it opens later this year.
• we have also announced  a £7 million expansion for Nestlé’s global Research & Development centre for confectionery in York