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PPCS Reconfigures UK processing Facility
3 July 2007
PPCS Reconfigures UK processing Facility
PPCS is planning to reconfigure its United Kingdom frozen processing facility to reflect increasing consumer preference for chilled lamb. Chairman Reese Hart said that following a strategic review of its international operations, PPCS has entered into a conditional sale of its Brooks of Norwich plant.
“On completion of the sale, PPCS will lease back part of the plant for the required volumes of frozen products packed in-market. The retained processing area will operate as a standalone toll-processing unit.
“A significant change in market demand since PPCS invested in Brooks of Norwich in 1988 is behind this decision.
“The consumer trend in the United Kingdom is an increasing preference for chilled rather than frozen lamb. United Kingdom retailers have consolidated the packing of chilled meat with a small number of large multi-species operators.
“The decision to reconfigure PPCS Brooks was not taken lightly. However, the proposed changes establish a more robust business model at Brooks of Norwich as a specialised independent facility, processing for both PPCS and other companies.
“We are in a consultation process with the 200 staff at Brooks of Norwich regarding the proposed changes in an effort to minimise the number of potential redundancies at the facility.
“The sales and marketing functions currently undertaken by Brooks of Norwich will be consolidated within PPCS’ wholly-owned subsidiary, New Zealand Lamb Company (UK),” he said.
PPCS Chairman Reese Hart said that PPCS had a significant investment in the United Kingdom market and the proposed changes would ensure its United Kingdom operations were better aligned to expected demand.
“The initiative delivers on PPCS’ commitment to ongoing improvements in performance.
“We already have new strategies underway such as our new livestock procurement plan, the consolidation of our lamb marketing in North America and a jointly commissioned study into future options for the New Zealand meat sector,” he said.
ENDS
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