Cessation of Production at Selby
Tate & Lyle PLC
Tate & Lyle PLC - 16 August 2007
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.
Notes to Editors
Astaxanthin is a nutrient for farm-raised fish made by the fermentation of sugar
products.
For more information contact Tate & Lyle PLC:
Mark Robinson, Director of Investor Relations
Tel: 020 7626 6525 or Mobile: 07793 515861
Ferne Hudson, Head of Media and Public Relations
Tel: 020 7626 6525 or Mobile: 07713 067433
About Tate & Lyle:
Tate & Lyle is a world leading manufacturer of renewable food and industrial
ingredients. It uses innovative technology to transform corn, wheat and sugar
into value-added ingredients for customers in the food, beverage,
pharmaceutical, cosmetic, paper, packaging and building industries. The Company
is a leader in cereal sweeteners and starches, sugar refining, value added food
and industrial ingredients, and citric acid. Tate & Lyle is the world number-one
in industrial starches and is the sole manufacturer of SPLENDA(R) Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 60 production facilities in 23 countries, throughout Europe,
the Americas and South East Asia. In the year to 31 March 2007, it employed
6,900 people in its subsidiaries with a further 2,300 employed in joint
ventures. Sales in the year to 31 March 2007 totalled £4.0 billion. Additional
information can be found on http://www.tateandlyle.com.
SPLENDA(R) is a trademark of McNeil Nutritionals, LLC
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