Unions call for answers as firm prepares to close cocoa factory

ADM Cocoa plans to shut the plant, which produces cocoa butter and cocoa mass for companies including Kraft/Cadbury, Nestl and Mars, on July 1. Around 100 jobs including 14 agency staff would be lost.

The owner, based in Decatur, Illinois, has blamed the decision on overcapacity in the cocoa processing market.

The trade union Unite had been planning a protest outside the massive site on Cleveland Street yesterday, but it was cancelled at the 11th hour at the request of management.

Representatives, who are looking to extend the consultation period, are hoping that the willingness of staff to take action has opened the company's eyes, and they will be able to get more answers from them at a meeting next week.

Union representatives suspect production may be moved to ADM's Shockinag Hamburg site. The company has previously said demand for its product is changing to eastern Europe.

Mike Wilkinson, Unite's Regional Officer in Hull, said: "We don't believe they have a business case to close the place.

"In a report before the European Commission ADM and its competitors turned round and said the cost of transportation of cocoa are negligible. To say it (the Hull company) is based in the wrong geographical area doesn't make any sense to us.

"They are also claiming there is over capacity but we believe ADM is adding to over capacity because they have opened a cocoa licor plant in Ghana and we also believe they have bought other cocoa producing properties within the last three years."

Mr Wilkinson said in the year until June 2009 the Hull plant made a profit of 5.25m.

He said: "That's why people are finding it so hard to stomach. If the company was losing money it would be more understandable, but they are dripping in cash which makes the decision to move even harder."

Jennie Formby, national officer for Unite Food & Drink sector said: "It is ludicrous that a profitable company, one producing first class products, wanted by UK consumers and in high demand by the UK market, is shifting production abroad at a time when key players in the chocolate industry such as Kraft/Cadbury are looking to increase their manufacturing operation in the UK."

Council leader Carl Minns has also written to ADM to try to open a dialogue and is asking the company to consider selling the plant as a going concern. He is also raising a motion at the next meeting of full council highlighting the factory's importance.

Coun Minns said: "ADM have to make a strategic decision, they are a global company. However we would like to see them put the plant on the open market and sell it as a going concern to protect jobs in Hull."

But Mr Wilkinson said the company had a policy of not selling out to competitors so that was unlikely.

The plans for the plant's closure have come at a time when the number of people claiming out-of-work benefits in Hull has now passed 1997 figures.

No one was available for comment yesterday, but previously the company said the proposal was "not a reflection on the quality of ADM Cocoa Hull's product or people."

An ADM spokesman said: "ADM is still in collective consultations with the union and elected employee representatives over the proposed closure of our facility at Hull. The Unite Union has asked us to extend the 30-day collective consultation period to allow time for ADM to respond to questions they've asked."

The company has proposed to close the plant on July, 1, 2010, but will not make a final decision until after the consultation.