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Kraft To Close One Cadbury Plant In UK

KRAFT FOODS INC said last month that it will close Cadbury's Somerdale plant in the United Kingdom as the British chocolate company originally planned, saying the plans were too far advanced to reverse.

Kraft, which got final approval last month to acquire Cadbury, previously said it hoped to keep the facility open.

But Kraft, based in Northfield, Illinois, determined during extensive talks with Cadbury leaders that the process of closing the facility was too far along and will close it by 2011 as planned.

Kraft did not immediately disclose how many workers will be affected at the plant in Keynsham, near Bristol.

The company said Cadbury had already invested $157m in building new production facilities in Poland and the majority of its lines have been transferred there - or will be by midyear.

Kraft's acquisition of Cadbury had many workers and unions worried about job cuts. But Kraft said it remains committed to investing £30m to improve its factory in Bournville and will review its combined manufacturing network over the next six months.

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