Cadbury to cut jobs, shift some production to Poland

by Eric Schroeder
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LONDON — Cadbury Schweppes P.L.C. said it plans to cut approximately 700 jobs and shift certain chocolate production to Poland in an effort to achieve greater supply chain efficiencies.

As part of the restructuring, Cadbury said it plans to close its Somerdale chocolate factory in Keynsham, near Bristol, by 2010, affecting all 500 employees. Chocolate production from Keynsham would move to the company’s Bournville facility and a plant in Poland, with the Bournville site receiving an additional £40 million investment.

In addition to the closing in Keynsham, Cadbury said it plans to eliminate 200 jobs in Bournville by 2010 as it shifts some chocolate production to Poland in 2008.

The company’s other two U.K. chocolate manufacturing sites at Chirk in North Wales and Leominster, Herefordshire are unaffected by this proposal.

"Cadbury is a great British company that has become an international success," said Trevor Bond, managing director. "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 U.K. is absolute. Our significant investment in Bournville is a testament to that."

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