Nestle UK has admitted that it might have to cut jobs and scale down production of KitKat chocolate bars for export because of the strength of the pound.
The admission follows a warning from the GMB general union that up to 2,000 jobs could be at risk at the Nestle factory in York.
Its national secretary for the food and leisure industry said shop stewards at York had been told the Swiss food group would "review the status of all its UK operations" unless there was action to cut the value of sterling.
Nestle has already switched production of up to 5,000 tonnes of KitKats from its York factory to Hamburg because sister companies in Spain, Portugal and Italy have decided to buy the bars from Germany.
The company admitted that sterling's high value was causing some hard thinking within Nestle UK.
John Sunley, the human resources director, said: "It would be wrong to speculate about any future impact on jobs. However, if the strength of the pound is maintained then there is a risk that our export business would suffer further and that this would lead to job losses.
"The effect of the strength of the pound on our export business remains a concern because the sourcing decisions of our export customers may change," he added.
Harry Donaldson, a GMB national secretary, said: "Nestle has told us quite openly that, unless something is done to address the high level of the pound, they will have no option but to review the status of all their UK operations.
"Productivity is running at record levels but there is simply no way we can cope with the crushingly uncompetitive exchange rate."
However, Nestle rejected suggestions of 2,000 job losses as alarmist. The York factory employed 2,400 people and only 800 of them worked on KitKat production. KitKat exports accounted for just 10-15per cent of the production at York, most of which was for the domestic market.
Mr Sunley added that the success of the company's domestic business had alleviated concerns about the export losses. The company said the successful introduction of the new KitKat Chunky had covered the cuts.
"The success of our UK KitKat business over the last year has offset any lost export volumes and therefore there have been no jobs losses as a result," said Mr Sunley.
Nestle UK's comments will be seen by euro-enthusiasts as confirming a trend for manufacturers in Britain. On Friday, Sumitomo, the automotive parts supplier, confirmed it was closing its Sunderland plant with the loss of 400 jobs.
Last week, Carlos Ghosn, president of Nissan, said the strength of the pound was forcing him to reconsider L150 million plans to base the production of the next generation Micra model at its Sunderland factory. Reuters
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
