Pladis: Tollcross factory closure planned for 2022
In a statement, Pladis said it had carefully reviewed alternative proposals put forward as part of the ongoing consultation with employees and their representatives. However, it said none of these options had presented a viable substitute for the original proposal.
The Tollcross factory has been hit with successive jobs cuts over the past ten years. In 2011, United Biscuits (UB) announced plans to shed a balance of 85 jobs there. In 2014, a further 202 redundancies were announced at the site shortly after UB's acquisition by Yildiz Holding, which then united its biscuit, chocolate and confectionery businesses to form the multinational Pladis in 2016.
The rationale for the proposed closure, first communicated to employees on 11 May, was to address excess capacity across Pladis’ UK sites and protect the long-term sustainability of the business.
Move production to other sites
Pladis said it intends to move current production from Tollcross to other UK sites and the factory is expected to cease operations in the second half of 2022.
As part of the formal consultation process, Pladis said it had met with employees and their representatives for more than three months where the business presented and answered questions on its proposal. The company also engaged regularly with the Scottish Government, Glasgow City Council, co-chairs of the Action Group Kate Forbes MSP and Councillor Susan Aitken, and Scottish Enterprise throughout the process to date.
Consultations continue
The consultations would continue, focusing on collective redundancy arrangements, it added.
“We know this news will be difficult for our colleagues at Tollcross, so it is with regret that we announce our intention to proceed with the proposal to close the site," said David Murray, Pladis UK & Ireland managing director. "Our priority is to provide employees with the on-going support they need as we continue with the consultation.
"Pladis is home to some of Britain’s best loved brands which have been part of the fabric of our society for nearly 200 years. In order to protect them for generations to come, we must take steps to address excess capacity in the UK.”
