Potato specialist Greenvale AP Ltd is closing its Greenvale Foods factory in Wisbech as a result of several years of difficulties which were exposed by the recession.
Following a review of group processing by the board of directors of Greenvale AP Ltd, the factory will end production on June 14 with redundancies likely.
The current order book and some of equipment will then be transferred to its Swancote Foods factory, which the company took on two years ago, in Telford.
Potential redundancy will affect 17 employees, although there are opportunities being offered elsewhere in the group which should reduce this number. An extra line set to be installed at the Swancote facility could “potentially” offer new jobs.
Chief executive Angus Armstrong told freshinfo: “It hasn’t been an easy decision at all. As a business unit it has been difficult for many years and the economic climate has forced our hand. Sales of prepared potato ingredient products for ready meals have fallen and this has affected us.
“The facility was originally built to produce dehydrated potato flake, which was a market that was flawed. Since then, we have done reasonably well on prepared potato products there, but the last eight to nine months hit business hard.”
Armstrong confirmed there would be “a few redundancies” with a maximum of 17, but almost certainly some staff would be moved elsewhere.
“Our commitment to potato processing remains strong and we are doing well using the waste from our high-quality fresh potato business for Sainsbury’s and Tesco to supply product for ready meals - it is a truly vertical model,” he said.
The Greenvale group has created in excess of 30 new positions of employment within the last six months.
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