The decision – which will affect 265 jobs at the site - marks the end of a consultation period that began last autumn when the manufacturer first proposed the closure of the facility.
GM site closures
General Mills site closures in the past 12 months have included:
East Tamaki, New Zealand
- Operated by GM since: 2002
- Closed: end of 2015
- Employees: 20
- Produced: fresh pasta, sauces and refrigerated soup
Kaohsiung, Taiwan
- Operated by GM since: 2006
- Closed: July 2015
- Employees: 78
- Produced: frozen dough products for Taiwan market
Junge Boulevard, Joplin, Missouri, US
- Operated by GM since: 2014
- Closed: end of 2015
- Employees: 120
- Produced: snack products
New Albany, Indiana, US
- Operated by GM since: 1959
- Closing: mid-2016
- Employees: 400
- Produces: refrigerated baked goods
West Chicago, Illinois, US
- Operated by GM since: 1959
- Closing: mid-2017
- Employees: 500
- Produces: cereals, meals and snacks
It is the latest in a string of site closures announced by the business in the past 12 months, including facilities in New Zealand, the US and Taiwan (see box-out).
Cost savings target
General Mills is undertaking restructuring projects in the US and internationally in a bid to boost efficiency, and last month announced it had increased its cost savings target to $500m by 2018.
In its latest results, for the second fiscal quarter of 2016, the business reported net sales down 6% to $4.4bn, with sales down 2% on a constant-currency basis. Total segment operating profit fell 1% to $839 million, though rose 2% on a constant currency basis.
Operated by General Mills since 2001, the Berwick site is known locally as the Jus-Rol factory and produces baking mixes and refrigerated and frozen dough products.
The Jus-Rol factory was established in 1958 and was one of the biggest employers in Berwick. It was acquired by General Mills in 2001 when it bought the Pillsbury and Jus-Rol businesses from Grand Metropolitan (now Diageo).
'Devastated' by news
Trade union Usdaw (Union of Shop, Distributive and Allied Workers) said staff at the site were “devastated” by the news.
“Since the initial announcement we have been in extensive consultation meetings with the company, looking at ways to avoid a closure,” added Usdaw area organiser Rab Donnelly. “With great sadness for the workers on the site, their families and the wider community, this proved not to be possible.
“This has been an extremely difficult process for all concerned and is devastating news for the staff.”