Tate & Lyle Set to End Citric Acid Production at Selby, Yorkshire 

01/02/07 Tate & Lyle has started a consultation process with employees today with a view to ceasing production of citric acid in Selby, Yorkshire. The announcement follows intense competition from Chinese imports and oversupply in the world market.  Closure would affect approximately 100 jobs at the Selby site. The consultation process will last 90 days.

Stanley Musesengwa, Chief Operating Officer, Tate & Lyle said, “The decision to begin this consultation process was a difficult one to take and we are grateful for the commitment and dedication of our colleagues at the Selby plant over the years.

This consultation follows a thorough review of the long term prospects of our UK citric acid business. Despite the best efforts of the team at Tate & Lyle to reduce costs, continuing pricing pressures mean that our UK citric acid business can no longer compete viably in an increasingly difficult market.”

In addition to pricing pressures, production of citric acid at Selby has been adversely affected by changes to the EU sugar regime (which became effective from 1 July 2006) which increased substrate costs.

Tate & Lyle will make every effort to help those colleagues potentially affected find suitable alternative employment.  This will include the provision of on-site job shop facilities staffed by independent professional counsellors.

In the year to 31 March 2006, Tate & Lyle’s UK citric acid business at Selby (i.e. excluding astaxanthin) returned sales of £26m and an operating loss of £2m. Tate & Lyle will continue to serve customers from existing inventory and operations in the US, Brazil and Colombia.