Cadbury Schweppes PLC shift to Poland costs 700 Cadbury jobs

Cadbury Schweppes PLC shift to Poland costs 700 Cadbury jobs

Cadbury Schweppes is one of the biggest beverage and confectionery companies in the world. With a history stretching back over 200 years, today our products are enjoyed in almost every country around the world. We hope you enjoy finding out more about us.



Cadbury Schweppes PLC, the world's largest candy maker, plans to move some chocolate production to Poland from the U.K., eliminating 700 jobs to reduce costs.

A plant at Keynsham, southwest England, is scheduled to close by 2010, affecting 500 workers, the London-based company said.

Cadbury will cut another 200 jobs during the same period at a plant in Bournville, central England, which will take on some of the Keynsham factory's work.

Cadbury said in June it planned to shed 7,500 jobs, or 15 per cent of its candy workforce, to boost profitability. The cuts will increase margins to the "mid-teens" by 2011 from the current 10 per cent, chief financial officer Ken Hanna has said.

The confectioner bought Warsaw-based chocolate maker Wedel in 1998. Staffing and manufacturing costs are lower in Poland than in the U.K., according to Cadbury.
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Hello from polish american Lech Bajan of RAQport.
CADBURY TREBOR BASSETT PROPOSES RESTRUCTURING OF UK CHOCOLATE MANUFACTURING
03 Oct 07

Cadbury Trebor Bassett today announced proposals to restructure its UK chocolate manufacturing in order to achieve greater supply chain efficiencies.

In order to continue to grow and remain competitive in the future we need to operate more effectively and reduce costs. Therefore, we are proposing a phased closure of our Keynsham chocolate factory from 2009 to 2010, affecting all 500 employees.

Chocolate production from Keynsham would move to both our Bournville factory and to our sister factory in Poland, with the Bournville site receiving an additional £40m investment.

This investment would enhance Bournville's status as a centre of excellence for chocolate production, and enable greater efficiencies within the site's chocolate assortment production.

It is also proposed that some chocolate assortment production would move from Bournville to Poland in 2008. This, together with an ongoing efficiency improvement plan would result in a reduction of approximately 200 jobs in Bournville from 2008 to 2010. It is hoped that any phased redundancies can be achieved voluntarily.

Our other two UK chocolate manufacturing sites at Chirk in North Wales and Leominster, Herefordshire are unaffected by this proposal.

We are now entering into full and detailed consultation with our employees at both sites. We are committed to treating our people with sensitivity and consideration in line with our values. Under these proposals significant resources will be made available to help employees to find new jobs, retrain those who would want to learn new skills and provide independent financial advice.

Trevor Bond, Managing Director, commented:
"Cadbury is a great British company which has become an international success. In order to continue to compete in the extremely competitive confectionery industry in the future we need to make the right decisions today.

Whilst the proposed closure of our Keynsham factory will be difficult for those affected our ongoing commitment to manufacturing in the UK is absolute. Our significant investment in Bournville is a testament to that."
Sir John Sunderland
Non-Executive Chairman
Todd Stitzer
Chief Executive Officer


Henry Udow Bob Stack Ken Hanna
Chief Legal Officer and Company Secretary Chief Human Resources Officer Chief Finance Officer


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