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Salvesen site faces closure

7th November 2002
Page 8
Page 8, 7th November 2002 — Salvesen site faces closure
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Which of the following most accurately describes the problem?

• by Dominic Perry Logistics firm Christian Salvesen is expected to close its chilled distribution centre in Evesham, putting about 80 jobs at risk, unless it can regain lost volume.

The Northampton-based company, which has seen its share price almost halve in the last year. says that the depot is under threat because of chanting circumstances. A spokesman says: "A demographic shift in the requirements of the major food retailers, coupled with a move to use smaller regional contractors, has resulted in the loss of critical volume of business and rendered the current operation economically unviable."

The company has begun consultation with its employees at the site, including almost 50 drivers, in a bid to find a way out of the situation, However, Colin Miles, MD food and consumer UK. warns that if no solution is found the depot will shut on 5 January.

He adds: "it [closure] is a high risk but we stress that no decision has been taken at this stage. Part of the consultation Is to see if we have suitable positions elsewhere in the business for our employees, and if we have we will offer them. But clearly the last resort is redundancy."

But one Salvesen driver has told CM "I don't think the management have been trying hard enough to secure more work for the place."

The purpose-built depot only opened it,: years ago.

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