July 8, 2019
ForFarmers announces proposals to transfer manufacturing in UK
ForFarmers UK has announced its proposals to close its site in Crewe, the United Kingdom, in the final quarter of 2019.
The move is in line with ForFarmers NV's efficiency plans as announced earlier this year. In the proposals, the feed volume that is currently manufactured by the Crewe mill is to be transferred to ForFarmers' facilities in nearby Newcastle under Lyme, Selby and Preston. The proposed closure of the Crewe site is subject to the required consultation with impacted employees. This consultation will include employees at the Newcastle under Lyme site, due to possible changes in its operating structure.
Earlier this year, ForFarmers NV announced its efficiency plans to decrease the group operating costs by EUR10 million (US$11.2 million) in 2021 (versus 2018). These plans include its intention to rationalise the supply chain both in terms of modernising existing mills and in its footprint of site locations.
ForFarmers UK operates 14 manufacturing sites which include production and blending mills. The company now sees an opportunity to transfer the feed volumes produced in Crewe to the nearby Newcastle under Lyme mill along with Selby and Preston where sufficient manufacturing and logistics capacity exists, ForFarmers UK said. This will improve overall network utilisation and allow optimisation of overall supply costs.
During the process of transferring the manufacturing from the Crewe site, ForFarmers' priority is to maintain and improve customer satisfaction by consistently delivering good quality feed and excellent service performance, the company added.
For now, no decision has as yet been taken on the future of the mill in Crewe.