Malton Bacon Factory may be sold off (From Gazette & Herald)

Malton Bacon Factory may be sold off

RYEDALE'S biggest employer, Malton Bacon Factory, could be sold off because the plant has been making a loss, its parent company has announced.

The factory, which is owned by Uniq, formerly known as Unigate, faces several possibilities - including sale or a management buyout.

The company said that the factory had been making a loss at the end of last year, though the situation was set to improve.

But Malton Bacon's situation was worsened by news from the City on Monday that Uniq's shares had fallen 13 pc from 250p to 218p on the London Stock Exchange, after it issued a general profits warning.

Investors are said to have taken fright at the news and the company's share price plunged 32p.

The company is blaming the profit loss on a number of factors, including the rationalisation of its Uniqsauces division. Meanwhile a recent drop in pig prices has started to have a positive effect on business at Malton Bacon.

In November, at its half-yearly results, the company blamed pig prices, which had soared on the back of the swine fever crisis, for a drop in profits.

But Uniq said this week: "The steps being taken together with recent reductions in the UK pig price relative to Continental pig meat prices are expected to result in the business returning to profit in the next financial year."

The company also said it might be prepared to sell the Malton Foods business in the future as it was seeking an "industry solution" for the business.

A spokeswoman confirmed this meant the possibility of a sale, a management buyout or another option.

"They are looking at all the options," she said.

Updated: 16:30 Thursday, February 15, 2001