UK-based Premier Foods is set to restructure its milling business into two distinct parts as part of its efforts to strengthen focus on third party customers while integrating its remaining milling operations into its baking and grocery businesses.
This proposed re-organization is the latest step in the company's plans to re-build value in its Bread and Milling business begun in 2012.
As part of this plan, the company plans to shut down a mill located in Barry, Vale of Glamorgan, Wales, by the end of October this year to align capacity with current market demands. The proposed closure will result in around 43 job losses. Consultations with the employees will commence over the coming days.
In future, a dedicated management structure will be established to manage the company's Rank Hovis free trade business which will serviced by its sites in Southampton, Manchester and Newbridge.
The remaining mills in Wellingborough, Selby, Andover and Gainsborough will be organized into a integrated flour supply business for the company's baking and grocery business.
Premier Foods will invest an additional £1m in improving the capability of its Southampton and Wellingborough sites as part of this restructuring.
Premier Foods Bread Division managing director and group Supply Chain director Bob Spooner said that by creating a dedicated structure aligned to its Rank Hovis customers, the company will be able to improve further customer focus and service levels.
"It's also critical that we take the tough decisions necessary to improve the longer term profitability and sustainability of the milling business by aligning our capacity to market needs."
