Closure of Young’s Seafood factory puts 450 Scots jobs at risk

YOUNG’S Seafood plans to close a factory in Scotland, putting 450 jobs at risk as it grapples with “exceptionally challenging” market forces.

Britain’s biggest seafood producer said deli and meals production at the Pinneys site in Annan had been earmarked for closure.

In a statement, the company said the Stapleton Road base was ‘no longer financially sustainable.’

South Scotland Labour MSP Colin Smyth said: “There are whole families employed at Pinneys which has served the town as a major employer for decades, and this closure will be an utter tragedy for so many people in our area.

“A closure of this scale in such a small community will send shockwaves right across the whole, already fragile, local economy.

“It is also a massive blow to the Scottish food and drinks industry to lose such a long-standing processor in Scotland.

“It’s just a few years since £3 million was invested at the site and production from elsewhere was moved to Annan.”

Mr Smyth has written to Scotland’s First Minister Nicola Sturgeon requesting “significant urgent additional investment” to the enterprise partnership in the area.

As part of the sweeping changes, natural salmon production would be shifted from the Pinneys site to a factory in Grimsby.

It said a further 50 positions may also be created at its scampi factory in Annan to meet growing demand.

The plans – part of the firm’s One Young’s strategy – would see the Pinneys factory shut down by the end of the year.

It comes as speculation continues to swirl over a multi-million pound sale of the business after sources told the Press Association in December the firm’s private equity owners were working with boutique investment house Stamford Partners on a potential exit.

Chief executive Bill Showalter said: “Today’s proposals to close our Young’s Pinneys site does not reflect on the committed and skilled teams at Young’s Pinneys – they are a credit to our company and if these proposals do go ahead we will work hard to maintain the employment of all colleagues throughout this transition.

“We have a long history of seafood production in Annan and whatever the outcome of the consultation we will continue to be a part of the community, given our other factory site within the town.”

The announcement came as Young’s landed three contracts with Marks & Spencer to provide chilled and frozen coated fish, natural salmon and white fish between 2018 to 2023.

The firm is also eyeing an export push into China after expanding the brand across supermarket shelves in America.

Young’s has already partnered with Pennsylvania-based frozen fish supplier The Fishin’ Company to bring its products to US retailers such as Walmart.

The Grimsby-based group employs about 2,000 staff across seven sites.

It was bought by Lion Capital, Bain Capital and HPS Investment Partners (UK) from CapVest in 2008, as part of a £1.1 billion takeover that included the Findus brands.

Lion broke up the operation in 2015, striking a £500 million deal to sell the European arm of Findus to Birds Eye-owner Nomad Foods, leaving it with the Young’s operation in the UK.