Morrisons looks to strengthen with processing plant deal
Morrisons has made a move to strengthen its manufacturing arm with the acquisition of a 105,000 sq ft meat processing factory from Vion UK. The move is part of the Yorkshire supermarket giant's pledge to invest £200m into the business over a three-year period.
The site, in Cheshire, is a centralised fresh pork and lamb retail packing plant which Morrisons said has the capacity to expand into beef products and increase its overall production.
Morrisons said more than 300 staff at the facility in Winsford will have their jobs secured as a result of the deal.
Morrisons, which is the second largest fresh food manufacturer in the UK, employs more than 7,000 people in its manufacturing arm. Its vertically integrated model differentiates it from its rivals, the supermarket claimed.
The food retailer already owns a number of bakeries, meat processing facilities and produce packing factories.
This acquisition is intended to strengthen the company's manufacturing capabilities, the supermarket said. Morrisons has pledged to invest £200m over a three-year period to support the growth of the business and acquired FlowerWorld last year, a specialist cut flowers business, as part of this.
"Owning the manufacturing sites that produce our fresh food is crucial to Morrisons because it ensures we can control quality and keep down costs for our customers," said Martyn Fletcher, Morrisons group manufacturing director.
"As Morrisons continues to grow, it is important we have the facilities to support us. This facility is a high quality, purpose built meat processing factory and will be an ideal addition to the fantastic manufacturing sites we already own."
"VION has extensive secondary processing and packing operations across the UK and production at the site will transfer to other VION UK facilities," Vion said in a statement.
"Wm Morrison Supermarkets plc is a respected and highly successful company, and the proposed sale will provide for continuity and job security for the Winsford workforce."
Yorkshire law firm Gordons, led by James Fawcett and Andy Brian, advised Morrisons on the deal.
