There are fears for up to 1000 jobs in Perthshire after a Dutch-based food producer VION NV announced it is to sell all of its UK food businesses and retreat to its core markets in the Netherlands and Germany.
The sale will affect 12 sites across Scotland and 38 in the UK. The main Scottish sites include the poultry processing plant at Coupar Angus with its 1000 employees and the McIntosh Donald red meat processing site at Portlethen which employs 280 staff. A further 400 are employed at cooked chicken operation at Cambuslang.
Across the UK the company employs 13,000 people. There will also be ramifications for the contract producers who supply chicken to Coupar Angus and for those employed at VION’s own poultry and pig production sites across Scotland. Furthermore a large proportion of the Scottish lamb crop heads south to VION-owned processing plants in Wales.
VION has only had interests in the UK since the late 1990s and its presence in Scotland dates back to as recently as 2008 when the company bought the troubled Grampian Country Food Group. Its largest site in employment terms the Halls of Broxburn pork processing plant is in the process of closing with the loss of 1700 jobs.
The Halls closure was seen by many industry insiders as being a precursor to the sale of all of VION’s businesses and that analysis has now been proved correct.
VION NV, however, says it is confident that it will successfully sell its UK pork, red meat and poultry business units as ongoing and viable businesses.
Peter Barr, chairman of VION’s UK division, said: ”Working with our advisors Rabobank/Rothschild, we have already started detailed discussions with a number of interested parties, including management, regarding the acquisition of the various parts of the UK business and these are progressing well.
”The level of interest in the businesses has been strong and we hope to be in a position in the near future to give further details about the progress which has been made.
”The sale process will be completed in a smooth and orderly fashion to ensure business continuity for our employees, agricultural and other suppliers and our customers.”
Scotland’s Finance Secretary John Swinney was, however, far from happy with the situation saying: ”This is an extremely disappointing announcement. I recognise that this will be a particularly worrying time for VION employees.
”The Scottish Government has been involved in protracted dialogue with VION over the last few months where we have repeatedly asked for reassurance on future of other plants in Scotland.
”This information has not been forthcoming. Today’s announcement is the first that the Scottish Government has heard of the sale of the other businesses from the company and we will be engaging with the company to maximise the opportunities for business continuity and provide support, where possible, to employees.”
Jim McLaren, chairman of Quality Meat Scotland, added: ”Today’s announcement will without doubt send shockwaves through the Scottish red meat industry.
”Our industry has worked hard to build an enviable global reputation for its brands Scotch Beef, Scotch Lamb and Specially Pork which are underpinned by world-leading quality assurance.
”It is vital we maintain critical mass in our Scottish livestock industry to ensure the long-term sustainability of our brands and profitability in each link of the supply chain.
”We look forward to a positive outcome of the sale of the red meat processing plants which are strong operations with a good customer base.”
NFU Scotland’s President, Nigel Miller said: ”We shall have to wait for more details about the nature and timing of VION’s withdrawal from the UK and its plans to do so with the minimum of disruption to its operations here.
”The Scottish food and farming sector is still getting to grips with the firm’s decision this summer to close its Broxburn operation.”