Business
Reorganisation of Milling Business
Reorganisation of Milling Business.
About this update from Premier Foods Plc
[{"type":"text","content":"\n \nRNS Number : 0037J Premier Foods plc 10 July 2013 \n \n\nFor immediate release\nPremier Foods plc\n10 July 2013\nPremier Foods plc (\"the Company\")\n \nPREMIER FOODS ANNOUNCES REORGANISATION OF MILLING BUSINESS TO STRENGTHEN CUSTOMER FOCUS AND ADJUST CAPACITY TO MARKET\n· Barry Mill Closure Proposed\n· Restructuring guidance for 2013 unchanged\n \nPremier Foods today announces it is to reorganise its Milling business into two distinct parts to strengthen focus on its free trade (third party) customer base while vertically integrating its remaining milling operations into its baking and grocery businesses. In addition, it is proposed to close the Company's mill located in Barry, Vale of Glamorgan, by the end of October 2013 to align capacity with current market demands. \n \nIn future, a dedicated management structure will be established to oversee the Company's Rank Hovis free trade business. This will be largely serviced by the Company's sites in Southampton, Manchester and Newbridge. The remaining mills in Wellingborough, Selby, Andover and Gainsborough will be organised into a vertically integrated flour supply business for the Company's baking and grocery business. \n \nThe Company will invest an additional c.£1million in improving the capability of its Southampton and Wellingborough sites as part of this re-organisation although the overall Group guidance on capital expenditure remains unchanged.\n \nFollowing a review of current milling capacity and demand, it is also proposed to close the Company's mill located in Barry. This will be phased over the coming months with final closure expected by the end of October 2013, resulting in the loss of around 43 employees plus a smaller number of local contractors. \n \nCommenting on the reorganisation plans, Bob Spooner, Managing Director of Premier Foods' Bread Division and Group Supply Chain Director, said:\n \n\"The Rank Hovis business has over 100 years of history in British milling with significant scale, expertise and know-how. By creating a dedicated structure aligned to our Rank Hovis customers, we will be able to improve further our customer focus and service levels.\"\n \n\"It's also critical that we take the tough decisions necessary to improve the longer term profitabili...