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Cadbury moves production to Poland

Cadbury Schweppes said on Wednesday it would close its factory in Keynsham, near Bristol, by 2010 as part of its previously-announced plan to cut 7,800 jobs and close 10 factories.

The Keynsham closure will mean the loss of 500 jobs, while another 200 jobs would go at Bournville, the UK confectionery company’s flagship factory. These would be phased out from 2008 to 2010 and Cadbury said it hoped to achieve the job losses voluntarily.

However, the group also said it would invest £40m in the Bournville site, which it has pledged to keep open. The restructuring announced in June will cost the group £450m.

Trevor Bond, managing director of Cadbury Trebor Bassett, the UK confectionery business, said the decisions were necessary “in order to compete in the extremely competitive confectionery industry.”

He said the group remained committed to continue manufacturing in the UK. Its other chocolate factories in North Wales and Herefordshire were not affected by the plan.

Production from Keynsham, which makes Fry’s Turkish Delight and other lines, will move to Bournville and to Cadbury’s factories in Poland. Some other production of chocolate assortments such as Roses and Heroes, will also move from Bournville to Poland.

Cadbury said that "In order to continue to grow and remain competitive in the future we need to operate more effectively and reduce costs," the statement said. and were part of its plan to improve profit margins from 10.2 per cent to the mid-teens by 2010.

It said it had yet to decided what to do with the site in Keynsham, where the factory was built in 1919 by Fry’s and later acquired by Cadbury. It is thought the site could be sold for significantly more than its book value.

In lunchtime trading Cadbury’s shares were up 5p at 585p.

Cadbury, which has been pondering how to split its confectionery and soft drinks businesses, is due to issue an interim management statement on October 10.

Copyright The Financial Times Limited 2007

Re: Cadbury moves production to Poland

I have nothing against Wedel producing more chocolate.