Halifax Nestle factory to see multi-million pound investment but jobs lost in Newcastle
Nestle has announced plans for a £29.4m investment at its factories in Halifax and York.
The confectionery giant is proposing changes to adapt its manufacturing for the future with the investment
However, the business is proposing the closure of its Fawdon site towards the end of 2023. This would see put 573 roles at risk, subject to consultation.
Nestlé Confectionery says it has an ambitious business strategy in the UK and the proposals are intended to support its long-term success in an increasingly competitive category.
The proposals which have been shared with its employees today are that:
• Production at Fawdon would move to other, existing factories in the UK and Europe and Fawdon factory would close towards the end of 2023.
• A £20.2 million investment at the York factory to modernise and increase production of KitKat in the city where the brand was first created in 1935.
• A further £9.2 million investment at Halifax to build on its existing expertise and equip the factory to take on the largest portion of Fawdon’s current production.
The Fawdon factory is home to many smaller, low-growth brands and maintains a diverse and complex mix of production techniques. In contrast, our factories at York and Halifax have
clearer specialisms and manufacture some of Nestlé’s biggest brands.
A spokesperson for Nestle said: "We do not underestimate the impact that the closure of Fawdon factory would have on the local area and, as part of the consultation, we want to work with the local community to find ways that we can support the area and our employees if these proposals were to go ahead.
"We believe these proposals would strengthen the UK’s position as a critically important hub for Nestlé Confectionery and home to the expert manufacture of many of our most popular brands including KitKat, Aero and Quality Street.
"Tur Halifax factory has operated at the same site for well over a century and, under these proposals, would become even more important to our operation with an overall increase in
"We believe that the business case behind these proposed changes is compelling and, ultimately, the best way to keep our business competitive in the long term.
"Nevertheless, we very much regret the uncertainty this announcement will cause our people and their families and we want to make sure they are supported throughout this process. There is now the time and the space for all parties to engage in a constructive consultation around today’s proposals and we welcome those discussions."
Halifax is home to Quality Street, the world famous chocolate assortment and the Christmas favourite.
Quality Street was invented in 1936 by Harold Mackintosh, the son of John and Violet Mackintosh who in 1898 opened the world’s first toffee factory.
Nowadays Quality Street is made by Nestlé in the same Halifax factory where the first assortment was produced 80 years ago and where around 12.5 million individual Quality Street sweets are made every day during peak season.
But it is not all about Quality Street. Nestlé Halifax is also home to Easter Eggs, After Eight and Butterfinger Cups.