Nestlé to close 'high value' Hayes coffee plant by 2014

Related tags Coffee Caffeine

Nestlé's decision to close its Hayes coffee plant by 2014 and transfer production to Tutbury in Derbyshire, follows hot on the heels of news that it planned to close its HQ in Croydon and move to Gatwick by the end of 2012.

The company is investing £200M at Tutbury and creating 125 new jobs. These are on top of the 300 announced last November, with the news of a £110M extension to Nestlé's Nescafé Dolce Gusto facility.

To cushion the blow to staff, Nestlé md Paul Grimwood said he hoped many of the 230 employees at the Hayes site would be able to transfer to Tutbury.

The main reasons given for the Hayes closure are the difficulties of redeveloping the site so that coffee production might continue there and that efficiencies will be gained by rationalising all of Nestlé's UK coffee manufacturing operations on one site at Tutbury. However, the company will inevitably benefit from the subsequent sale of the site in Greater London.

When Nestlé's plans to move its HQ out of Croydon were first rumoured several years ago, analysts cited the high real estate value of the space released in London as a compelling reason for the relocation.

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