Kraft Foods Inc (KFT). said Tuesday that following extensive talks with senior management at Cadbury PLC (CBRY.LN), it has accepted that Cadbury plans to close the Somerdale manufacturing facility in Keynsham, near Bristol are so far advanced that it is unrealistic to reverse them, adding that the Somerdale plant will close by 2011 in line with the plans already put in place by Cadbury.

MAIN FACTS:

-It has now become clear that the investment required to reverse the closure programme would be so significant that alternative plans were not viable.

-Cadbury has already invested more than GBP100 million in building new production facilities in Poland and the majority of the lines have, or are about to be, transferred by mid of this year.

-Kraft will continue to support Cadbury's existing GBP30 million investment plans for the Bournville site.

-During the next six months Kraft will conduct a strategic review of its combined manufacturing network.

-The company has said that it will honour Cadbury's previous undertakings to Somerdale employees concerning the terms and conditions of the closure and the commitment to rebuild the Fry Club on the Somerdale site.

 
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com
Cadbury Schweppes (LSE:CBRY)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Cadbury Schweppes Charts.
Cadbury Schweppes (LSE:CBRY)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Cadbury Schweppes Charts.