Northern Foods has ceased production of Marks & Spencer’s ready meals.

More than 700 Northern Foods factory workers could lose their jobs following an announcement it is to stop production at its Grantham, Lincolnshire facility.

The company said it plans to “mothball” its Fenland Foods ready meals factory from August 2008.

The move follows Marks & Spencer’s decision to shelve production of its Italian ready meal range at the site. The contract was worth approximately £45 million of annual sales and represented the majority of production at the Fenland factory.

Northern Foods said its immediate attention will be placed on supporting its employees through the consultation period.

Andy Fletcher, from union GMB said: “This tragic news takes the heart out of Grantham, the workers and their families, especially as there is very little alternative employment in the Grantham area. GMB will do all we can to mitigate the impact of this announcement.”

Looking forward, Northern Foods said it will focus on alternative future opportunities.

Stefan Barden, Northern Foods Chief Executive, said: “We believe that chilled foods is an attractive growth market and that our ready meals are the best in the industry.  We have recently invested over £20 million to acquire the Ethnic Cuisine ready meal business and the Grimsby soup plant, together with a £9 million investment to expand our salads business.  

“The Fenland facility would remain mothballed whilst we explore opportunities to secure profitable new business with other customers for the site. We have plans to invest in the site so that it can continue to be a leader in its market.”

Northern Foods currently employs 11,000 people and has 22 sites operating in the UK and Ireland.

For more information, visit www.northern-foods.co.uk

By Natasha Piscitelli