Monday, March 15, 2010

Kraft to face MPs over Keynsham Cadbury closure

 

 

Cadbury's Somerdale plant in Keynsham
The Somerdale plant in Keynsham is set to close by 2011

The vice-president of Kraft Foods will be questioned by MPs over his company's takeover of Cadbury later.

Marc Firestone is due to appear in front of the House of Commons' Business Committee on Tuesday.

He is expected to face tough questions about Kraft's decision to continue with the closure of Cadbury's Keynsham factory after pledging to keep it open.

Unions and local politicians have complained that Kraft misled employees over the issue.

Official complaints have already been lodged with the City's takeover panel - the body responsible for regulating takeovers and mergers.

Polish move

The chairman of the Business and Enterprise Committee, Peter Luff, said MPs also wanted to know why Kraft went back on its pledge, and wanted it to clarify its position.

The committee will also hear from unions representing Cadbury workers, as well as current Cadbury managers.

The Keynsham plant was already due to close before the Kraft takeover, with production due to move to a plant in Poland.

But in the battle to take control of Cadbury, Kraft told the BBC it believed it would be in a position to keep the plant open.

Following the takeover, however, the company said plans for the move to Poland were too advanced to reverse.

No comments:

Post a Comment