Merthyr meat plant redundancy threat 'major blow' for Wales

The plant employs around 1,100 people
The plant employs around 1,100 people

350 jobs are at risk as a major food retailer is proposing to move its meat processing plant in Merthyr Tydfil, Wales, to Cornwall.

The 2 Sisters Food Group is proposing to move the retail packing department from its St Merryn operation in south Wales to its site in Cornwall.

St Merryn, which was taken over by 2 Sisters Food Group in 2013, packs meat at the Merthyr site it has run since 1999.

The Farmers Union of Wales has described the move as a 'major blow to Wales'.

It is understood that around 350 affected staff have been written to regarding the proposal, and are currently in a 45 day consultation period.

The red meat sector in the UK faces
The red meat sector in the UK faces 'many serious challenges', according to a statement by St Merryn Foods

FUW’s Finance and Organisation committee South Wales representative Brian Bowen, who farms at Pencoedcae farm, Princetown, near the St Merryn site, said: “The plant employs around 1,000 people, so we are talking about the potential loss of around a third of the workforce.

“This would be a major blow for the local economy and for Wales’ agricultural supply chain as a whole.”

Mr Bowen said the news came at a time when there was already extreme uncertainty about the future due to the vote to leave the European Union.

“The agricultural supply chain employs scores of thousands of people in Wales’ rural and urban areas, and these proposals will come as a major blow to the families affected and the community as a whole, added Mr Bowen.”

'Many serious challenges'

St Merryn Foods, which currently employs 1,100 staff at the site on Penygarnddu Industrial Estate, confirmed the job losses were part of a "wider strategic review" and could happen as early as January.

"We do not take the decision to launch this review lightly, but it is the only way our business can survive and prosper for the longer term," the statement said.

"Regrettably, the red meat sector in the UK faces many serious challenges including declining markets, falling volumes, higher input costs and a fiercely competitive retail landscape.

"This extremely difficult environment means the packing operation at Merthyr, which includes the packing of steaks and chops, is no longer sustainable.

"Our main focus now is to begin discussions with our colleagues to explore every available option to mitigate the potential loss of this function, which will include seeking relocation and redeployment opportunities elsewhere in the group.

"This decision does not impact our beef and lamb slaughter and cutting operations and these will continue to operate as usual at Merthyr Tydfil. The site will continue to employ up to 700 colleagues."