YOUNG’S Seafood said today it will start formal consultation shortly with staff and their representatives at its Fraserburgh and Spey Valley sites to explore proposals and possible options for the facilities.
This follows the recent news that Sainsbury’s is set to transfer its smoked salmon and fresh salmon processing contracts away from Young’s to Marine Harvest from November.
The transfer of the Sainsbury’s business will leave the Fraserburgh and Spey Valley sites significantly under-utilised.
Since the Sainsbury’s decision, Young’s Seafood has been considering several options.
Today it is proposing the future integration and servicing of the remaining customer contracts and volumes presently processed at Young’s Fraserburgh and Spey Valley into its other manufacturing sites in Grimsby, Livingston and Annan.
Young’s believes that this proposal delivers a significantly more sustainable manufacturing footprint than other potential consolidation options.
For example, consolidating volumes into Grimsby will allow the company to make better use of its existing central resources and capabilities, which are located in the town.
If, following consultation, this proposal is implemented, it is likely to result in the future closure of the Young’s Fraserburgh and Spey Valley sites in or after November and the loss of more than 900 jobs.
The proposal could also result in the transfer and/or creation of approximately 200 jobs across Young’s Seafood sites in Grimsby, Livingston and Annan.
Pete Ward, chief executive of Young’s Seafood, said: ‘Today’s announcement does not reflect on the skilled teams at Young’s Fraserburgh and Spey Valley, who are committed, dedicated and continue to work hard through this time.
‘This process will not be easy, but we have to face some tough decisions and we believe the proposals, outlined today, could deliver a significantly more sustainable manufacturing footprint than other potential consolidation options.
‘As we move forward, we continue to be focused on providing our customers and consumers with high quality, good value, fish and seafood and we will talk, in detail, with employees about options for the future.’
Young’s Seafood is a leading supplier of chilled and frozen, branded and retailer branded, fish and seafood to UK retailers and consumers.
The company employs around 3,000 people at eight manufacturing sites in Grimsby, Fraserburgh, Livingston and Annan.