Jobs blow as factory shuts

About 25 workers have lost their jobs following the closure of a Mid Wales factory.

Zest Foods, owned by the Associated British Foods group, has closed its premises on the Mochdre Industrial Estate in Newtown and relocated its work to eastern Europe, it was confirmed today.

Today's confirmation came just a few days after another Newtown business axed nearly half of its jobs. Sunflex is to cut its workforce over the next few months.

Zest founders Tim and Rina Clarke, who set it up 20 years ago before selling up in 1996, today told of their shock.

The couple started the enterprise making pesto in their garden shed at their previous home in Cornwall, before quitting their jobs and forming Zest Foods.

They opened their first factory in Newtown in 1987 and Zest had two factories employing about 60 people at its peak.

The couple, who now live in Kerry, sold their business to G Costa, producers of the Blue Dragon foods brand, which in turn sold the whole company to ABF in 2003.

Mrs Clarke said they were shocked to learn Zest was closing in Newtown and the work relocated to Poland.

"I think this is a tragedy, first and foremost for the individuals and families involved but also for the local economy," she said.

"Moving a company like Zest Foods to Poland because it is cheaper there is a short-term strategy - what will happen when Turkey becomes cheaper than Poland? Will they go on chasing cheap wages and relocate there?"

Mrs Clarke said when she and her husband sold Zest Foods, there was a specification the factory would remain in Newtown for at least 10 years.

"It was a good business and a well-respected business and the staff have tried their best to keep it going in Newtown, trying to get other investors interested, but at the end of the day they were not successful and the factory has closed," she said.

"It was a flagship Welsh company and very important to Newtown."

Mrs Clarke said some of the employees had worked for Zest since it started.

County council board member with responsibility for economic development Bob Davey said: "This is yet another devastating blow for Mid Wales."

Nobody at ABF was available for comment today.