Tulip has begun a consultation on closing its ‘unsustainable’ Bodmin site, putting 270 jobs at risk.
The company, the sale of which to US meat giant Pilgrim’s Pride was confirmed a few days ago, said site has been operating at a ‘significant loss’ for several years.
“While it remains a well-invested site with industry-leading capabilities, it is unsustainable to maintain operations under the existing business model.
“Closure is not a foregone conclusion and Tulip is seeking to galvanise employees, customers and suppliers to coming together to agree a viable plan for the sustainable future of the site.
“However, unless we can secure a joint recovery plan with our strategic partners and employees, we cannot continue to operate while making such significant losses.”
Tulip, which has posted heavy losses over the past few years, is starting a 45-day consultation over proposals to cease production at the site, which is expected to end on December 9.
The Unite union said the potential closure was ‘another shock wave to the already battered Cornish economy’.
Unite regional officer Deborah Hopkins said: “This is another blow for Bodmin. Tulip used to be one of the primary employers in Bodmin and the local community will suffer greatly from these losses just before Christmas.”
“The relentless loss of jobs from Tulip in recent years reflects other job losses from food and drink processing across Cornwall, primarily in the middle and east of the county, at a time when wages are stagnating.”