Jobs could be lost as part of AG Barr's potential relocation from Wales to Milton Keynes.
The soft drink manufacturer is looking to move its carton production from Tredegar in Wales to a new site in Buckinghamshire. The company is looking to invest £4 million in its existing Milton Keynes production facility but conceded that the closure of the Tredegar factory could result in a net loss of 40 jobs, Food Manufacture reports.
However, despite the loss of the Wales site the company is looking to create 27 jobs in Milton Keynes. The proposals are now set to be subject to employee consultation and further information about the financial implications will be disclosed at a later stage. AG Barr stated that it would look to help those affected and employees will be offered the opportunity to relocate to Milton Keynes if they wish.
Despite the loss of staff in Wales, Shore Capital analyst Phil Carroll believes it is a sensible move for the company. He told the news provider: "Whilst it is only a proposal at this point and a clearly a sensitive time for the affected employees in Wales, we do believe the business care for the moving of carton production to Milton Keynes is compelling.
"We note London and its surrounding areas are key markets for the Rubicon and KA brand so there seem to be an obvious distribution cost saving from the closer proximity of production alone."
The move comes after AG Barr announced that it had seen an increase in sales of its famous Irn Bru brand. The Scottish firm noted that sales had grown by 5.2 per cent for the 15 weeks to May 11th, this was compared to the same period. The company noted that the driving force behind its success was its marketing and promotional campaigns which have helped to provide a much higher profile for the brand.