Dutch food company Vion to sell UK business

Dutch food company Vion has initiated the process to sell its UK food business, Vion UK, which employs 13,000 people at 38 sites across the country.

The company noted that this move is part of its strategy to return to its core activities by focusing on food operations in the Netherlands and Germany, and developing its global ingredients business.

Vion UK chairman Peter Barr said the company is working with its advisors Rabobank-Rothschild and that talks with several potential buyers are progressing well.

"The sale process will be completed in a smooth and orderly fashion to ensure business continuity for our employees, agricultural and other suppliers and our customers," Barr added.

Vion UK, headquartered in Livingston, Scotland, owns the following companies – Key Country Foods, Tranfield and Grampian Country Food Group.

It offers beef, lamb, pork and chicken products to the food retailing and manufacturing and food service sectors.

Vion noted that the decision to divest its UK operations follows a detailed analysis of the markets in which the company is active, its position in these markets, and the growth prospects for the future.

In October 2012, the company initiated the closure of its loss-making Halls of Broxburn pork processing facility in West Lothian, Scotland, after rejecting two offers for the site.

The company, which blamed the complexity and inefficient layout of the plant, tough market conditions, and over-capacity in the UK meat industry, confirmed that the facility is expected to close by February, leading to a loss of nearly 1,700 jobs.

Vion, based in Eindhoven, the Netherlands, has two core activities – food and ingredients. It has a turnover of €9.5bn and employs 26,500 staff.