Vion Food UK is set to close its loss-making Hall's of Broxburn pork processing plant in West Lothian, Scotland, a move which will lead to a loss of 1,700 jobs.
Vion Food, which rejected two offers for the site, stated that neither of the bids was viable. The company confirmed that some sections of the facility will stop production this month, while the rest will be closed by February 2012.
Scotland finance minister John Swinney said the Scottish government, its agencies and West Lothian Council will collaborate to identify alternative employment for all those affected by this decision and to develop opportunities to enhance the wider West Lothian economy.
"These plans will help to mitigate the impact of this closure on West Lothian as a whole," Swinney added.
Announcement of the plant's possible closure was made by Vion in July 2012, when it said that the plant continued to register losses despite significant investments and major restructuring exercises over the past four years.
It blamed the complexity and inefficient layout of the plant, tough market conditions, and over-capacity in the UK meat industry for the losses.
Vion Food UK chairman Peter Barr said that even though several steps were taken to secure the future of the business, the company is currently losing £79,000 per day at the site.
Hall's of Broxburn was acquired by Vion Food in August 2008, when it purchased the struggling food firm Grampian Country Food. The facility employs 1,150 permanent and 595 agency staff, and handles 8,000 pigs each week.
