CHOCOLATE CRUMB MANUFACTURING FACILITY IN MALLOW TO CLOSE

November 11, 2004

Nestlé has today announced a decision to close its chocolate crumb production facility at Mallow, Co Cork. The facility is based at the Dairygold plant in Mallow and employs 57 people.

Chocolate crumb is an ingredient made from milk, sugar and cocoa that is used in chocolate manufacture. Nestlé currently produces this ingredient at Girvan in Scotland, as well as at Mallow.

A strategic review of Nestlé’s business requirements for chocolate crumb identified that due to improved technologies and the loss of the chocolate crumb contract for Canada, these requirements could be met from one site going forward.

Following the recommendations of the review, a detailed investigation to assess which of the two facilities should be retained was undertaken. It has been established that by sourcing all crumb through the Girvan site, Nestlé can achieve lower total costs. 

Therefore, the plan is that the Scottish facility at Girvan will be retained while our Irish facility at Mallow, will regrettably close. Subject to discussions, the closure is planned to take place by March 2005.

Every effort will be made to help employees find alternative opportunities.

The company said the decision was no reflection on the excellent contribution the Mallow factory has made to Nestlé over many years. Nestlé is commencing consultations with both the representative unions and with individual staff.

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For Information:

Siobhan Molloy, WeberShandwick FCC
Tel: 00 353 (0)86 8175066

Winifred McCourt, WeberShandwick FFC
Tel: 00 353 (0)87 2446004