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Cadbury jobs cut despite £75m Bournville investment | |
(about 5 hours later) | |
Birmingham-based chocolate maker Cadbury has warned jobs will be cut despite a £75m investment in its Bournville headquarters. | |
The money - earmarked for modernising machinery - will be released over three years and is expected to secure the future of the site. | |
But a spokesman for the firm said he believed there would be a reduction its workforce as a result of the changes. | |
The Unite trade union said it hoped any job losses would be voluntary. | |
Cadbury said investment would bring four new production lines to the Bournville plant, which opened in 1879. | |
The business was taken over by American food giant Kraft in 2010. | The business was taken over by American food giant Kraft in 2010. |
The Bournville factory currently produces some of the firm's most popular chocolate bars, including Dairy Milk, Creme Eggs and Wispas. | The Bournville factory currently produces some of the firm's most popular chocolate bars, including Dairy Milk, Creme Eggs and Wispas. |
Tony Bilsborough, a spokesman for Cadbury's parent company Mondelez, said he could not comment on "specific" figures but admitted job losses were likely. | |
Speaking to BBC WM, he said: "We are just trying to be open and frank and say 'we believe there will be a reduction in numbers' but that's down to discussions we are having with the workforce now." | |
Reece McCarthy, national officer for Unite, said the firm had so far been transparent about its plans but the union favoured voluntary redundancies. | |
"We would oppose compulsory redundancies," he said. | |
Mr Bilsborough had said earlier it was "difficult to say" whether the investment would lead to new products. | |
He said: "We will be looking to grow manufacturing volumes and to have the capabilities to introduce new products. | He said: "We will be looking to grow manufacturing volumes and to have the capabilities to introduce new products. |
"This is all subject to ongoing consultations". | |
'Seminal moment' | |
Joe Clarke, regional industrial officer for Unite, said the investment was "desperately needed". | Joe Clarke, regional industrial officer for Unite, said the investment was "desperately needed". |
"Some of the plant and equipment is more than 30 years old and we haven't been able to compete with other manufacturers within the group," he added. | "Some of the plant and equipment is more than 30 years old and we haven't been able to compete with other manufacturers within the group," he added. |
Mr Clarke said the investment would increase efficiency and "open the door" to bidding for new products. | Mr Clarke said the investment would increase efficiency and "open the door" to bidding for new products. |
He likened the investment to that of another local manufacturer Jaguar Land Rover, which has announced increased production levels. | He likened the investment to that of another local manufacturer Jaguar Land Rover, which has announced increased production levels. |
"At least we've got an opportunity to secure the future of the site," Mr Clarke added. | "At least we've got an opportunity to secure the future of the site," Mr Clarke added. |
The Bournville plant also includes the company's chocolate research and development site, which works on the creation of new chocolate bars. | The Bournville plant also includes the company's chocolate research and development site, which works on the creation of new chocolate bars. |
The company said the investment would include replacing out-of-date production lines and opening new ones. | The company said the investment would include replacing out-of-date production lines and opening new ones. |
The factory currently employs about 960 workers. | The factory currently employs about 960 workers. |
Tim Pile, president of Birmingham Chamber of Commerce, earlier said the investment marked a "seminal moment" for Bournville. | |
"Like other parts of British manufacturing there is a productivity gap in Bournville that needs closing in order for Bournville to compete with the best in the world," he added. | "Like other parts of British manufacturing there is a productivity gap in Bournville that needs closing in order for Bournville to compete with the best in the world," he added. |