Intersnack, the owner of KP Snacks, plans to consolidate its UK nut processing and packing to remove over-capacity from its network and to lower fixed costs.
The German snack giant will close its production site in Haverhill. The Pom-Bear maker also plans to invest GBP16m (US$26.2m) to open a new facility in Rotherham, updating its existing site there.
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The move is expected to create around 80 additional jobs at Rotherham over the next four years. However, Intersnack did not detail how many positions were likely to be eliminated in Haverhill.
“All our analysis has shown that an investment into a new Rotherham site is the optimum solution to allow us to create a sustainable business into the future. We appreciate the focus on quality and the commitment of our Haverhill colleagues and we will work closely with them as we consult on these proposals in the coming weeks,” the company said.
Intersnack acquired KP Snacks from its former private-equity owners, Blackstone and PAI Partners, 12 months ago. The combined firm is the largest nut processor in the UK, producing nuts under the KP brand as well as for private-label contracts.
The decision to rationalise Intersnack’s UK manufacturing footprint was reached by a joint management team representing both Intersnack and the KP business, which has been tasked with creating a common platform for growth.
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By GlobalData“This significant investment demonstrates Intersnack’s commitment to strengthening our nut business in the UK. Although proposed restructurings such as these are always difficult, we firmly believe this proposal is the most cost-effective way for us to modernise and future proof our nut processing capability,” Mark Thorpe, MD for operations for KP Snacks and Intersnack UK, said.
