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Hovis to close loss-making Southampton mill

 

 

Hovis is to close a loss-making flour mill in Southampton with the loss of up to 70 jobs.

The warehouse and logistics operations in DHL Bawtry, DHL Southampton and DSV Belfast will also cease at the end of the year, the company said in a statement.

Nish Kankiwala, Chief Executive Officer of Hovis Ltd said: “The proposed Southampton Mill closure is part of the process to futureproof our core baking business in the competitive market.

Whilst we never take decisions such as these lightly, we firmly believe this is the right decision for the business and ensures Hovis will continue to grow and prosper as a great UK brand and bakery manufacturer Ina very competitive market place.”

The statement from Hovis said: “Following the creation of Hovis Ltd in 2014, the Board has focused on driving sustainable growth and profitability across the group by investing in our core bakery business and cementing our reputation and position as a leading UK manufacturer of bakery products.

“The Milling business has undertaken a detailed strategic review to identify the best way forward in an economically challenging environment within a highly competitive market.

“The review has identified that Southampton Mill is significantly loss-making and following the consideration of a number of options, including a review of the competitive marketplace and the current and anticipated costs of operating the site, we propose ceasing operations at the end of 2018 and closing the site.

“This would result in the loss of up to 70 jobs in Southampton Mill (including Central Laboratory) where the consultation process will now commence.

“This proposal would also see the warehouse and logistics operations in DHL Bawtry, DHL Southampton and DSV Belfast cease at the end of the year.”

Nish Kankiwala, Chief Executive Officer Hovis Ltd said: “Hovis has succeeded in building a strong and successful business that reflects our heritage as a UK family favourite while also adapting to future opportunities.

“We have a clearly defined strategy to invest in and continue to grow our bakery business and to be a leading, quality manufacturer.

“The proposed Southampton Mill closure is part of the process to futureproof our core baking business in the competitive market.

“Whilst we never take decisions such as these lightly, we firmly believe this is the right decision for the business and ensures Hovis will continue to grow and prosper as a great UK brand and bakery manufacturer Ina very competitive market place.

“Our priority now is to work with affected Milling colleagues and customers to minimize the impact on them.”