Twinings loses grant for move that cost 400 jobs

AB Foods, which owns the company, plans to open the new £27m (43 million euro) site in Poland later this year and close a plant employing 260 workers in North Shields.

More than 100 employees in Andover, Hampshire, are also expected to lose their jobs as the site halves its workforce over the coming months.

Following the announcement of job losses in November 2009, Twinings claimed the grant would be used to open new state-of-the-art packing facilities rather than move existing equipment.

But the European Commission launched a review after accusations that the company’s use of the £10.5m (12 million euro) grant breached EU rules.

Critics including Keith Taylor, Green MEP for South East England, claimed Twinings should give it back because it was supposed to be used to open new investments rather than relocating existing facilities overseas.

Mr Taylor said: “I’ve been challenging this grant for over a year now. Today’s decision to cancel it is a victory for Twinings staff who’ve lost their jobs and the campaigners who supported them.

“EU regeneration cash should be used for genuine regeneration, and not simply for corporations to move jobs to lower wage economies and then get taxpayers to foot the bill.”

A spokesman for Twinings confirmed it has now learned it has not met the criteria for the grant, adding: “We applied for the grant because we considered that we did satisfy the conditions, but accept that the decision as to eligibility lies with the relevant authorities.”