Meat processor Tulip plans to end operations at its Freshway Chilled Foods unit in Wolverhampton, England.
The move comes after the company failed to retain a food supply contract with The Foodservice Centre (FSC).
Tulip has commenced a 45-day consultation period involving Freshway, the employee works council and union representatives. The consultation will revolve around the future of the 208 employees working in the unit.
Tulip group HR director Kirsty Wilkins said that the loss of the FSC business will result in a 50% reduction in the site's turnover, making it economically unsustainable to maintain operations.
"Whilst we continue to explore ways in which we may be able to secure a future for the business we cannot see a viable alternative to closure at this point in time."
Wilkins said that the company is discussing various options, including the possible redeployment of employees into alternative permanent roles within its operations.
It is also exploring ways to consolidate the remaining Freshway site operations at its other locations.
Owned by the Danish Crown, Tulip is one of the leading pork producers and exporters. Its UK business runs 17 facilities and has a workforce of over 8,000.
Image: The proposed closure comes as Freshway Chilled Foods lost a sandwich supply contract. Photo: courtesy of Vichaya Kiatying-Angsulee/ FreeDigitalPhotos.net.
