FDBusiness.com

Nestle UK has unveiled proposals for a further £200 million extension to its Nescafe factory in Tutbury, Derbyshire, but will close its coffee factory at Hayes. The investment at Tutbury is in addition to the £110 million extension to the Nescafe Dolce Gusto facility at the site announced in November 2011. For the first time in the UK all forms of coffee production including freeze dried, spray dried and pod technology, will be brought together on one site.

However, production at Nestle’s coffee factory in Hayes will transfer to Tutbury, leading to the eventual closure of the Hayes site, where 230 people are employed, in 2014. The Hayes factory plays a vital role in Nescafe production. However, it is not feasible to redevelop the Hayes site to create the manufacturing facility Nestle UK needs for the future.

125 new jobs will be created in Tutbury through the transfer of production. This is in addition to the 300 new jobs in Tutbury announced in November 2011.

Paul Grimwood, chairman and chief executive of Nestle UK & Ireland, says: “Over the next three years, we are investing £500 million to establish our next generation of world class manufacturing facilities in the UK. The proposed restructuring, which will bring all our coffee manufacturing together at Tutbury, is a key part of this overall investment programme.”

Over the past five years Nestlé has undertaken a multi-million pound investment programme, establishing its next generation of world class competitive manufacturing facilities in the UK. This investment programme includes:

* £200 million spent transforming Nestle’s major confectionery factory in York to create a best in class manufacturing facility;

* creating a £40 million European centre of excellence for Nescafe Cappuccino in Dalston, Cumbria;

* establishing a £20 million seasonal confectionery manufacturing centre in Halifax;

building a new £35 million bottling plant in Buxton that will be one of the most environmentally sustainable operations of its kind in the world when it opens later this year;

* a £7 million expansion for Nestlé’s global Research & Development centre for confectionery in York.

Nestle UK & Ireland has approximately 7,000 employees across 19 sites and comprises: Nestle UK (Food & Beverage, Confectionery and Food Services), Nestle Ireland, Nestle Purina Petcare, Nestle Waters, Nestle Nutrition, Jenny Craig, Nespresso, Cereal Partners UK (a joint venture with General Mills) and Lactalis-Nestle Chilled Dairy (a joint venture with Lactalis).