Cocoa factory closure in city to cost 86 jobs

ADM Cocoa plans to shut the plant, which produces cocoa butter and cocoa mass for chocolate and confectionery manufacturers, on July 1. The US-based owner of ADM has blamed the decision on overcapacity in the cocoa processing market.

It is yet another blow to the city's manufacturing base, at a time when the number of people claiming out-of-work benefits in Hull has now passed 1997 figures.

Council leader Carl Minns said: "It's clearly devastating to the staff who work there and their families."

But he added: "The council has been talking to the company and will be talking to Jobcentre Plus and putting a package of measures together should the company finally close.

"This is bad news for the city but as a manufacturing hub, it still has a lot of strength and as the economy picks up we expect that to grow."

A 30-day consultation has now begun at the Cleveland Street site.

A company statement said: "The proposal is not a reflection on the quality of ADM Cocoa Hull's product or people. The proposal is based on overcapacity in the cocoa processing market; even with consolidation the demand for semi-finished cocoa processing is shifting from the UK to Central and Eastern Europe, where market growth is strongest.

"In order to continue to meet our customers' demands, we need to align our production capacity with our European and global customer base, providing better efficiency for our customers."

The plant was formerly owned by British Cocoa Mills, which had been operating on the banks of the river Hull since the 1950s.