Northern Foods to Shut Bakery Plant

25/08/06 Northern Foods has said it is planning to shut its Trafford Park Bakery in Manchester, with the loss of 690 jobs as it slims down to focus on making a few, profitable foodstuffs.

The company said it expected a phased closure of the site to be completed by December this year.

The site produces a range of chilled savoury pastry products, but made a loss of £3m in 2005/06.

The move is part of a shake-up that Leeds-based Northern Foods announced in May after poor sales forced it to issue two profit warnings.

In a statement, Northern Foods said the closure was part of its strategy, announced in May, "to focus on businesses where Northern Foods has a competitive advantage".

The company said it would take a one-off charge of about 12 million pounds in the first half of the current financial year for the closure, although that would be offset by future proceeds from asset sales.

News of the closure of the Trafford Park site comes a day after Heinz confirmed that its HP factory in Birmingham is to close with the loss of 120 jobs.