The proposal is being made to improve the efficiency and productivity of our manufacturing operations and, as a result, Britvic is proposing to close the Norwich manufacturing site. The proposal has been approved by the Board for consultation with impacted employees and, subject to full and proper consultation, it is proposed that the site will close towards the end of 2019. We have also informed Unilever, who co-own the site with Britvic, of the proposals.
Britvic has 242 employees on site that are affected by this decision. Every impacted employee will be offered a comprehensive package of support, including redeployment opportunities at other sites and outplacement services to help find alternative employment.
In November 2015 Britvic announced a 3-year business capability programme, investing a net £240m of capital in our GB manufacturing operations, to ensure we had the appropriate infrastructure to compete in the market and deliver sustainable cost and commercial benefits. We remain committed to this programme and the proposed closure does not affect the previously stated guidance. It is anticipated that there will be costs associated with the implementation, subject to the outcome of the consultation process, which are expected to be clarified in Britvic's preliminary results release on November 29th.
Simon Litherland, CEO said:
“Britvic is proud to be a British manufacturer and Norwich has been an important site for our business for many years. This is not a proposal that we make lightly and we know this is upsetting news for our colleagues. We are very grateful for the hard work and dedication of our employees at our Norwich factory and today's announcement is in no way a reflection on their performance or commitment. However the changes we are proposing today present significant productivity and efficiency savings in our manufacturing operations, deliver environmental benefits and, coupled with our ongoing investment programme in our GB manufacturing operations, ensure that we have the flexibility and capability we need to respond to changing consumer trends faster and more efficiently. No decisions will be made prior to full and proper consultation with employees and our focus is on ensuring we offer our colleagues on-going support and assistance throughout this difficult time.”