UK Manufacturing Review

Premier Foods plc 02 July 2007 2 July 2007 Premier Foods PLC Completion of UK Manufacturing Review Premier Foods plc ('Premier') announces that it has completed the review of its UK manufacturing facilities following the completion of its acquisition of RHM on 16 March 2007. The review, which covered Premier's ambient factories, the RHM Culinary Brands factories and the RHM Customer Partnership's Ledbury Preserves factory, focused on optimising efficiency across our manufacturing network and providing the capacity to support the continued growth of our brands. Premier confirms that the annual cost synergies targeted from both the integration of Campbell's of £28m and RHM of £85m remain on track. The company is commencing consultation on proposals to close 6 of the 11 sites covered by the review and invest significantly in the other 5 sites. Proposals include: • Focusing dry food production on three major sites in Worksop (Notts), Knighton (Staffs) and Ashford (Kent); • Focusing preserves and spreads production in Histon (Cambs); • Moving production of chutneys, pastes and cooking sauces to Bury St Edmunds (Suffolk) and foodservice desserts to Knighton (Staffs); and • Closing 6 factories in Bristol, Droylsden (Manchester), Ledbury (Herefordshire), Middlewich (Cheshire), Reading (Berks), and Wythenshawe (Manchester) by early 2009. Consultation on these proposals will begin immediately with affected employees. Robert Schofield, Chief Executive of Premier, said: 'Our priority continues to be growing our business and our brands and to do this we need to remain competitive in the market place. These proposals will enable us to enhance our efficiency whilst giving us the capability to drive our branded sales growth. Our proposals include significant investment in 5 of our sites whilst 6 sites will close. We appreciate the impact our proposals will have on employees at those sites and we will work with them to explore opportunities for redeployment within the group or outside of the company.' Premier will release its pre-close period trading update for the 6 months to 30 June 2007 together with RHM's results for 2006 restated in line with Premier's accounting policies and reporting calendar at 7am on 9 July 2007. Premier Foods plc Tel: 01727 815 850 Paul Thomas, Finance Director Robert Lawson, Director of Mergers & Acquisitions and Investor Relations Gwyn Tyley, Director of Investor Relations Citigate Dewe Rogerson Tel: 020 7638 9571 Michael Berkeley Justin Griffiths Nicola Smith This information is provided by RNS The company news service from the London Stock Exchange
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