AG Barr production shift could see 40 jobs go

The company said a £4M investment programme at its existing Milton Keynes facility to ready it for the transfer was expected to lead to the creation of 27 jobs.

However, it said its plans for the move would also include the closure of the Tredegar plant at the end of January next year, affecting 67 employees there.

Subject to employee consultation​

The Scottish beverage manufacturer said the proposals would now be subject to employee consultation and further information on the financial impact would be provided at the conclusion of those discussions.

“The company will do everything possible to support those affected throughout the process​,” said AG Barr in a statement. “Where possible, employees will be offered the opportunity to relocate to Milton Keynes.”​

The Milton Keynes development would support current demand and future capacity and flexibility in high speed carton production for its soft drinks brands, principally Rubicon and KA juice, AG Barr said.

The project would represent a second phase of investment at Milton Keynes.

Cost savings​

Shore Capital analyst Phil Carroll said he believed the move would deliver cost savings for AG Barr and represented a wise move.

“Whilst it is only a proposal at this point and clearly a sensitive time for the affected employees in Wales, we do believe the business case for the moving of carton production to Milton Keynes is compelling.​

“We note London and its surrounding areas are key markets for the Rubicon and KA brands so there seems to be an obvious distribution cost saving from the closer proximity of production alone.”​

AG Barr, which is based in Cumbernauld, Scotland, and is best known for its Irn Bru brand reported 5.2% revenue growth in its first financial quarter this year, ahead of the market​.

It is currently gearing up for the uplift in demand it expects during Glasgow’s 2014 Commonwealth Games, which open in July, of which it is a major sponsor.