Sugar manufacturer Tate & Lyle has warned that 45 jobs could be lost at its Selby site in Yorkshire following its decision to cease producing its fish nutrient there.
The company confirmed today that it intends to cease the production of Astaxanthin, a nutrient for farm-raised fish made through the fermentation of sugar products, as a result of rising manufacturing costs and falling sales prices.
Tate & Lyle said that it was taking part in discussions with its joint partner in the venture, Igene Biotechnology, over its planned exit from the "loss-making business".
The manufacturer said its share of the operating loss regarding Astaxanthin for the year to March 31st was £3 million.
A 30-day period on consultation with the company's employees has now begun over plans to cease the production of the fish nutrient at the Selby site, with Tate & Lyle planning to end operations at the end of September.
It is anticipated that the company's share of cash closure costs will be £3 million.
Explaining the decision to cease production at the Selby plant, Tate & Lyle's chief operating officer Stanley Musesengwa said the business had faced rising costs as a result of raw material prices "escalating" following changes to the EU sugar regime and higher energy bills.
"The difficult decision to begin the consultation process follows a full review of the business and its profitability for the foreseeable future," he explained.
"This decision is not a reflection of the hardworking employees we have at the site and every effort was made to secure the future of the plant," Mr Musesengwa added.
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