Nestlé announces factory closure in the UK

Nestlé announces major investments in UK manufacturing and the closure of the Hayes, Middlesex, Nescafé plant.

On January 16 Nestlé announced investment plans for the UK amounting to nearly GBP 500 million over the next three years.

With much fanfare, the company reiterated a number of planned investments already announced, including GBP 110 million in the Tutbury coffee factory in Derbyshire to increase production capacity for Nescafé Dolce Gusto.

Hidden in the 4th paragraph of the announcement was a reference to the Hayes factory, where freeze-dried coffee is produced, a key product for the key UK market. In order to be “fit for the future”, the factory would need to be redeveloped, but its location in what is now a residential area makes this impossible. So it is proposed that all production will transfer to Tutbury, where a new GBP 200 million extension will be built for that purpose, leading to the closure of the Hayes factory in 2014.

Nestlé UK has further announced that the expansion of the Tutbury factory will lead to the creation of some 400 jobs – which will be offered to the 230 Hayes workers who will lose their jobs.

The announcement fails to mention that the 2 factories are at some 300 kilometers distance from each other.

The three-month consultation process is in progress with workers and their unions USDAW and UNITE.