Vion Food to close pork plant in Scotland

Vion Food UK is set to close its loss-making Hall’s of Broxburn pork processing plant in West Lothian, Scotland, a move which will lead to a loss of 1,700 jobs.

The company rejected two last-minute offers for the site as they were not viable.

Vion Food UK chairman Peter Barr said that after evaluating both offers, the company concluded that they did not provide a viable and sustainable alternative to the proposed closure of the plant.

The company noted that some sections of the plant will stop production this month, while the rest will be closed by February 2013.

After the closure, Vion is likely to shift a portion of work from the site to its other plants in the UK; however, the supply of a majority of the products currently handled by the plant will be stopped.

Scotland Finance Minister John Swinney said that the government, its agencies and West Lothian Council will collaborate together to find alternative employment for all those affected by the closure and to develop opportunities to improve the West Lothian economy.

Vion Food announced its proposed plan to close the facility in July 2012, when it noted that the facility continued to register losses of £79,000 per day, despite significant investments and major restructuring exercises over the past four years.

It blamed tough market conditions and over-capacity in the UK meat industry for the losses.

Following the company’s closure announcement plan in July 2012, John Swinney organised a taskforce to address the potential redundancies.

The firm also rejected a proposal from the Scottish government to purchase and lease back the food plant, stating that acceptance of public money would only delay the proposed closure.

Hall’s of Broxburn was acquired by Vion Food in August 2008 from the struggling firm Grampian Country Food.

The facility employs 1,150 permanent and 595 agency staff, and handles 8,000 pigs each week.

Vion Food UK is a part of the Netherlands-based Vion and produces and processes beef, lamb, pork and chicken, as well as a range of sausages, cooked meats and other convenience products.