American food company Heinz is set to cut about 45 production and management jobs at its site in Kendal, Cumbria, UK, as part of its plan to improve efficiency.
According to Heinz, this decision has been taken as it will be transferring the production of infant milk formula for the Chinese market to a plant in New Zealand.
Heinz said that shipping infant milks from the UK to Heinz markets in Asia and the Far East is increasingly uncompetitive and is not efficient or sustainable in the long term, reported Triblive.com.
Following the proposed job cuts, the facility will focus on manufacturing products for the markets in UK and Europe. The infant milk production for China will be contracted out to New Zealand-based dairy cooperative Fonterra.
The consultation with the workers is expected to start on 11 June. Currently, the site has a workforce of 170.
This move comes a few days after Heinz was acquired by Berkshire Hathaway and 3G Capital for $28bn, including the assumption of outstanding debt.
HJ Heinz is a global company that produces and markets foods specialising in ketchup, sauces, meals, soups, snacks and infant nutrition. The company reported sales of $2.83bn in the second quarter of fiscal 2013, up from $2.81bn in the previous year.
