Telford factory to become part of chicken giants' joint venture
Hundreds of workers at a huge chicken processing plant in Telford are to be moved to a new company after its owners agreed to a joint venture with another industry giant.
Faccenda Foods, which employs more than 1,000 people at its chicken processing plant at Hortonwood, has agreed to set up a joint venture along with Cargill, the American company which employs more than 2,000 people in Herefordshire.
The new UK company will focus on chicken, turkey and duck. The companies expect the new business to be able to meet "changing customer needs" in the retail and food service sectors.
The plans are likely to attract the attention of regulators including the Competition and Markets Authority.
“We believe the two organisations are complementary. Combining into one entity allows us to build on our strengths, grow in the market and better serve our customers," said Chris Langholz, president of Cargill Poultry.
"The venture will facilitate greater opportunities to innovate and deliver new and exciting poultry products for consumers."
Ian Faccenda, chief executive officer of Faccenda Investments, added: "The new joint venture confirms our long-term commitment to being a responsible partner across the entire supply chain, providing stability and security to our customers, suppliers and growers for years to come.
“This is an exciting time. We are bringing together talented people from both businesses with complementary values and expertise, and giving them the opportunity to develop and be successful in a new business with the capability to grow.”
The businesses will roll their entire UK poultry divisions into the new venture, including the Telford site and Cargill's hatchery at Shobdon near Leominster, with the exception of Cargill's cooked poultry products site in Wolverhampton and its import, trading and distribution business.
Cargill will also continue to operate its European poultry businesses in France, Russia and the Netherlands. Faccenda will retain its shareholding in Dartmouth Foods.
The Telford operation underwent a £35 million expansion in 2015, and now operates three lines which can process two million chickens a week for customers including major supermarkets.
The name of the new joint venture is going to be announced when the deal is completed.
Andy Dawkins, managing director for Faccenda Foods, will be appointed chief executive of the newly-formed company. Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed chief commercial officer.
The new business will employ about 6,000 people in the UK, with staff coming from both parent companies.
