ABP Plans to Buy Pilgrim's Europe's Welsh Lamb Plant
A key Welsh lamb processing site may soon change hands. The Irish meat processor ABP would take over the Llanidloes plant in Powys from Pilgrim's Europe, under a proposed deal, while a second Pilgrim's lamb site faces closure.
What ABP gets in Powys
The Llanidloes facility sits in central Wales. According to the companies, that gives it access to one of the most important sheep-producing regions in the UK. It has also built a reputation for premium Welsh lamb products.
The joint release from ABP and Pilgrim's Europe says the "highly skilled" workforce at the site would move across to ABP. The transfer would run under TUPE, the UK rules that protect employees when a business changes owner.
Kevin Cahill, chief executive of ABP UK, called the site "an excellent strategic fit for our lamb business". He said ABP would work closely with the producers who supply Llanidloes. He pointed to its network of more than 3,500 sheep farmers across the UK as a source of support.
Andover is left out
The deal does not cover Pilgrim's Europe's lamb retail packing operation at Andover in Hampshire. ABP gives a reason: it already has lamb deboning and retail packing capabilities across its UK network.
Separately, Pilgrim's Europe has opened a consultation on closing Andover towards the end of January. The proposal is not final, because the consultation comes first. If the closure goes ahead, the company says it hopes to keep colleagues through "alternative employment opportunities" elsewhere in its UK operations.
Why Pilgrim's is stepping back from lamb
Ivan Siqueira, president of Pilgrim's Europe, said a strategic review of the lamb operations had led the company to conclude "ABP is the right long-term owner for the Llanidloes business". The sale, he said, lets Pilgrim's focus its investment on its core poultry, pork and value-added businesses.
The source gives no price or completion date for the deal.
The two companies
ABP is based in County Louth, Ireland. It describes itself as one of Europe's leading meat processors. It supplies fresh and frozen meat to retailers and foodservice firms from sites in Ireland and the UK, plus affiliate sites in Belgium, Germany, the Netherlands and Poland.
Pilgrim's Europe belongs to the US group Pilgrim's Pride. Its 17,000 staff work at more than 40 sites in four countries: the UK, Ireland, France and the Netherlands. Its household-name brands include Richmond and Fridge Raiders.
Source: FoodManufacture.co.uk