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Business & Economy

Hundreds of jobs at risk in Nestlé Fawdon factory closure plans

Hundreds of North East jobs are under threat at a sweet maker.

Nestlé has revealed plans to close its plant in Fawdon, Newcastle.

Around 475 posts are understood to be at risk, with Fawdon’s production lines set to stop towards the end of 2023.

The company says the proposals are part of £29.4 million plans that will see Nestlé bolster confectionary making at sister sites in York and Halifax to “support our long-term success in an increasingly competitive category”.

Reflecting on potential job losses at Fawdon, bosses say “they do not underestimate the impact the closure would have on the local area”, adding they “want to support the area and our employees if these proposals were to go ahead”.

Under the terms of the closure plans, Nestlé says production would move from Fawdon to plants across the UK and Europe, with Halifax taking on the largest portion of the North East factory’s workload.

A spokesperson confirmed the business is now in discussions with staff and unions, adding it hopes to “engage in a constructive consultation”.



They said: “We believe the business case behind these proposed changes is compelling and, ultimately, the best way to keep our business competitive in the long-term.

“Our Fawdon factory is home to many smaller, low-growth brands and maintains a diverse and complex mix of production techniques.

“In contrast, our factories at York and Halifax have clearer specialisms and manufacture some of Nestlé’s biggest brands.

“The decision to propose Fawdon’s closure follows significant investment and a sustained effort by the factory team to reduce that complexity and introduce new products in recent years.

“The skilled and dedicated team at Fawdon have worked tirelessly to deliver those changes and these proposals are absolutely no reflection on their efforts.

“Nevertheless, we very much regret the uncertainty this announcement will cause our people and their families, and we want to make sure they are supported throughout this process.”

The spokesperson added Nestlé’s York plant will receive £20.2 million under the plans to modernise the base and increase production of its flagship KitKat brand.

A further £9.2 million investment is planned for Halifax, which officials say will equip the base to take on the bulk of production presently carried out at Fawdon.