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179 job losses at sauce factories 179 job losses at sauce factories
(40 minutes later)
A speciality food and sauce company has announced it plans to close two factories in Wales, with the loss of 179 jobs, and to move work to Poland.A speciality food and sauce company has announced it plans to close two factories in Wales, with the loss of 179 jobs, and to move work to Poland.
G Costa said 151 workers at Abercarn, Caerphilly and 28 at Newtown in Powys would be affected next year.G Costa said 151 workers at Abercarn, Caerphilly and 28 at Newtown in Powys would be affected next year.
The firm said it had to secure its long term future by moving to a lower cost manufacturing operation.The firm said it had to secure its long term future by moving to a lower cost manufacturing operation.
It recently took on work to produce Reggae Reggae Sauce, which was featured in the BBC's Dragon's Den programme.It recently took on work to produce Reggae Reggae Sauce, which was featured in the BBC's Dragon's Den programme.
The idea came from chef and entrepreneur Levi Roots, based on his grandmother's recipe.The idea came from chef and entrepreneur Levi Roots, based on his grandmother's recipe.
He said he wanted production of his sauce to continue in the UK.He said he wanted production of his sauce to continue in the UK.
Mr Roots said: "I will pull my business from any company making Reggae Reggae sauce if they are saying they have got to move to Poland because of their problems and I will find somewhere else in the UK to make it"
Distressed
Richard Plaster, an engineer who's worked for the company and its predecessors since 1962, said people in Abercarn were distressed by news of the closure.
"The managing director came down and told us that we've done well, we're making a profit, we've done very well over the last two years - but we can get it for a third cheaper in Poland," he said.
"It was a family business when I started out, and to me it's more about accountants making money.
"I think they're hypnotised into the fact that they're going to Poland; I don't think anything will change their view"
G Costa managing director Andrew Mayhew said: "Proposals of this sort are never easy".G Costa managing director Andrew Mayhew said: "Proposals of this sort are never easy".
'Effort''Effort'
The company, which is part of the giant Associated British Foods group, said it was proposed that both factories would close in spring 2008.The company, which is part of the giant Associated British Foods group, said it was proposed that both factories would close in spring 2008.
A 90-day period of consultation is underway with workers.A 90-day period of consultation is underway with workers.
Mr Mayhew added: "It in no way reflects the commitment and effort of our teams at both sites.Mr Mayhew added: "It in no way reflects the commitment and effort of our teams at both sites.
"However, the reality is that we can only sustain our business in the longer term by moving to a lower cost manufacturing operation with more flexibility to make a wider range of products than our current factories will allow.""However, the reality is that we can only sustain our business in the longer term by moving to a lower cost manufacturing operation with more flexibility to make a wider range of products than our current factories will allow."
He said the company intended to do "everything possible" to minimise the impact on workers.He said the company intended to do "everything possible" to minimise the impact on workers.