Welsh Country Foods to shut down lamb processing facility in Wales

Welsh Country Foods (WCF) has announced that it is shutting down its lamb processing facility in Gaerwen, Anglesey, UK, with immediate effect, a move which will lead to a loss of 310 jobs.

The plant closure follows the completion of a 90-day consultation period with unions and workers which started in January, when Vion Foods announced that it could be forced to close the site unless a buyer could be found by April.

In March, Vion evaluated plans for a management buyout of the lamb processing business – Welsh Country Foods; however, it failed to find a buyer.

WCF stated that the decision to close the facility was taken after its key customer, Asda, confirmed that it was terminating its fresh lamb contract and switched to an alternative supplier.

The lamb supply contract with Asda represented about 50% of business at the Gaerwen facility, which handles 640,000 lambs annually, according to Vion.

Welsh Country Foods site director Eddie Ennis said the company has explored every possible avenue but has been unable to identify any viable alternative to closing the plant.

"We have had extensive discussions with a number of parties who expressed interest in buying the plant but regrettably no agreement could be reached with these parties whereby the site can continue operations on an ongoing basis."

"We are fully aware of the impact which this decision will have on the local economy and the community in Anglesey but the loss of the plant’s major customer means that there is no longer a viable future for the site," Ennis added.

With the closure of the Anglesey plant now confirmed, the company noted that it will be working closely with the relevant local agencies to identify ways to minimise the significant impact on jobs and the local economy.

The Anglesey facility was acquired by Vion Food in August 2008, when it purchased Grampian Country Food, and forms part of Vion’s red meat activities.

Welsh Country Foods has been the major processing facility for Welsh lamb in North Wales.

In November 2012, Vion announced that it was selling its UK food operations in order to focus on its core food activities in the Netherlands and Germany, and develop its global ingredients business.

As part of this plan, Vion completed the management buy-out of its UK pork business in January this year, securing about 4,000 jobs.

Earlier this month, Vion completed the sale of its UK red meat and poultry businesses to 2 Sisters Food.