Astaxanthin Partners Ltd to cease Astaxanthin production at Selby facility.
Tate Lyle announces today that Astaxanthin Partners Ltd., its joint venture with Igene Biotechnology Inc., intends to cease production of Astaxanthin at the Tate Lyle site in Selby, North Yorkshire. Additionally, Tate Lyle is in discussions with its joint venture partner concerning Tate Lyle’s exit from this loss making business.
Consultation with employees has now begun and will last 30 days. Closure would affect 45 jobs at the Selby site. Subject to employee consultation, it is planned that Astaxanthin production will cease at the end of September 2007. Tate Lyle’s share of the operating loss of Astaxanthin for the year to 31 March 2007 was £3 million. Tate Lyle’s share of cash closure costs are estimated at £3 million. An impairment charge on Tate Lyle’s investment in Astaxanthin Partners Ltd was taken in the financial year to 31 March 2007.
Stanley Musesengwa, Chief Operating Officer, said: “The difficult decision to begin the consultation process follows a full review of the business and its profitability for the foreseeable future. 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. The business has faced pressures due to escalating raw material prices resulting from changes in the EU Sugar Regime and higher energy costs. Unfortunately an increasing cost base coupled with a falling selling price means that production of Astaxanthin at the Selby site is no longer commercially viable.”
Tate Lyle will help those colleagues potentially affected to seek suitable alternative employment. This will include the provision of on-site job shop facilities staffed by independent professional counsellors.
Tate Lyle operates through two global business units, Speciality Food Ingredients and Bulk Ingredients, supported by Innovation and Commercial Development. The Group's strategy is to become the leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving the Bulk Ingredients business for sustained cash generation to fuel this growth.
Speciality Food Ingredients include starch-based speciality ingredients (corn-based speciality starches, sweeteners and fibres), no calorie sweeteners (including SPLENDA® Sucralose) and Food Systems which provides blended ingredient solutions. Bulk Ingredients include corn-based bulk sweeteners, industrial starches and fermentation products (primarily acidulants). The co-products from both divisions are primarily sold as animal feed.
Tate Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2012, Tate Lyle sales totalled £3.1 billion. http://www.tateandlyle.com. SPLENDA® is a trademark of McNeil Nutritionals, LLC
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