Operational Proposals

RNS Number : 1375C

Barr(A.G.) PLC

06 November 2009

 



IMMEDIATE RELEASE                                                                                              6 November 2009

A.G.BARR p.l.c.

Manufacturing Investment, Supply Chain Restructuring and Site Rationalisation Proposals

A.G.BARR p.l.c., the soft drinks group, today announces the following initiatives:

Manufacturing Investment

Following a comprehensive review of future capital requirements and overall site operating costs, it is proposed to invest £8-£10 million over the next twelve months to increase capacity at the Cumbernauld site. This investment would create operating capacity at the Cumbernauld site that would absorb all current PET packaged products from the Mansfield factory and allow for forecast future growth.

Supply Chain Restructuring

As the final step in the integration of the Rubicon business and to allow for future growth, it is proposed to commence discussions with third party logistics companies with a view to establishing a third party operated central distribution hub for the south of the country. This proposal would mean ceasing our current inhouse storage and distribution operations at the Mansfield site and the exit from existing Rubicon third party logistics operations.

Mansfield Site Closure Proposal

The Company has today entered into a consultation process with employees with a view to closing the Mansfield site in early 2011 and the commencement of outsourced logistics activity during the course of 2010.

There are currently 98 employees employed across production and logistics at the Mansfield site and in addition a small number of further employees will be impacted by these proposals.

Further information on the financial impact of the proposed changes will be given at the conclusion of the consultation process.

For further information, please contact:

A.G.Barr    Tel: [phone]    Buchanan Communications    Tel: [phone]

Roger White, Chief Executive    Tim Thompson / Nicola Cronk

Alex Short, Finance Director

 

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