Seven Seas blames economy over Hull factory closure plan
SEVEN Seas has blamed the country's economy after announcing its factory in Hull could close.
More than 250 jobs could be lost as a result of the closure if MPs fail to persuade the vitamins firm to keep its site in east Hull open.
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Tough times: The Seven Seas factory in Hedon Road, east Hull.
The company is looking to gradually outsource production from Hull over three years, with the potential loss of 259 jobs in the city.
MP Karl Turner met Seven Seas's managing director John Redman yesterday to discuss the reasons behind the planned closure.
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Mr Turner said: "The meeting gave me the opportunity to hammer home how devastating this decision would be for our economy.
"Mr Redman presented the company's business case to me and I have no reason to think the business reasons behind this decision are anything less than genuine.
"I don't think the decision has been made yet but I believe, based on the information given to me from Mr Redman, the business will outsource its production from Hull by 2015.
"However, I want to ensure everyone I will be doing everything I can to try to persuade them to stay."
Hull North MP Diana Johnson said losing 259 more private sector jobs in Hull would come as another blow to East Yorkshire's economy.
She said: "From what Seven Seas is saying, it is clearly a tough business climate.
"Although MPs will try everything possible to look at all the options available during the consultation, it will be tough reversing this company's decision without a growing economy."
Mr Redman told Mr Turner the dramatic decline in profit over the past two years was a key factor in the decision.
Mr Turner said he was given assurances by the company it would remain in the city for at least the next ten years.
He said: "This announcement came completely out of the blue.
"I was given assurances the company was here to stay for a long time but, unfortunately, profits at the firm have reduced rapidly and it has been left in a precarious position."
Seven Seas, which opened in Hull in 1935, has been criticised by MPs since making the announcement last week.
Mr Turner used yesterday's meeting to enforce the importance of the company to Hull and that its departure would be a huge blow to the city's fishing heritage.
He said: "Families are depending on Seven Seas and I want guarantees the company is doing all it can to stay in Hull."
Mr Redman told Mr Turner the company will be working with trade unions and help their employees find new work should the company stick to its decision.
Yesterday also marked the start of a 90-day consultation between the company and trade unions to try to reach an agreement on pay conditions.
Another meeting is scheduled with the company in two weeks, when Mr Turner will be joined by Ms Johnson and MP Alan Johnson to discuss the consultation process.
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Comments
by molls04
Friday, October 26 2012, 9:06PM
“Local Voice - don't worry about this guy David under score Nivea - he's on the HDM message boards every day of the week because he's a stupid old fart with nothing better to do,,, probably lives in Beverley, votes Tory but criticises anything about politics and politicians ... just ignore him he may go away..”
by Neddyfonk
Wednesday, October 24 2012, 1:32PM
“Like all other companies quoted on the stock market - if they are not satifying the share holders by organic (double digit)growth then they are failing. When RPM (Retail Price Maintenance) was dumped Seven Seas had an opportunity to gain market share by selectively lowering prices and compete with own label brands but were too worried about the brand image.”
by localvoice
Wednesday, October 24 2012, 12:59PM
“Nice that our East Hull MP is talking to this company and trying to explore any options for the company to stay in Hull.
Now unlike some on here who are Lib Dem Councillors but not giving a real name and making negative comments all the time.
The Coalition Government are forcing companies like these out of Hull and we should all get behind them like we did for our caravan industry and I recall Karl Turner fought that one.
Mr David Nivea your so negative about Life in Hull do you live here are you from Hull I doubt it. Our Local MP is working hard to help our city and we should applaud and support him trying to save jobs for local families.”
by rob37n
Wednesday, October 24 2012, 11:32AM
“MPs stating the obvious, no doubt blaming everyone else as per usual, then coming up with some ridiculous unworkable plan to save the company, which closes anyway, as once the 90 day consultation starts the vultures are already circling the corpse, then claiming they did everything they could to save jobs, and the idiots of the relevant wards rewarding them with being re-elected yet again come the next election. At least we're spared having Prescott snatching defeat from the jaws of victory as he managed during the cod wars this time.
It is my opinion that Seven Seas see more profit in moving manufacturing to a nice new factory in the far east, where they can pay lower taxes, slave labour wages, and have a workforce that live next to the factory in barracks like so many other companies that have relocated to China. Why on earth would they want to keep manufacturing in Hull where they're forced to pay "decent" wages, observe Health and Safety legislation, provide pension, observe environmental regulations, etc?
Given that it wouldn't really matter what colour rosette the MPs wore to be honest, but they are compelled to be seen to be doing something otherwise they would struggle to further justify their existence, maybe we could off-shore the MP job to China?”
by David_Nivea
Wednesday, October 24 2012, 11:09AM
“"SEVEN Seas has blamed the country's economy after announcing its factory in Hull could close."
*Could* close. Who will they blame if it doesn't?
Nice to see the uninspiring local MP's trying to make political capital out of this situation, as usual.
How can MP's save jobs? What purpose, other than being lobby-fodder, do they serve?
I wonder how they''ll spend their extra £25,000 a year if the MP's payrise is approved?”
by PatrickNewman
Wednesday, October 24 2012, 10:29AM
“Is Karl Turner saying that their business case is unanswerable. What exactly is the reason for their departure - to avoid a loss or to increase profits for their owners. What do they mean by outsourcing - off shoring like so many jobs that have been lost. For nearly 80 successful years Hull is owed a full explanation. Mr Turner you are not doing your job well. Was it a nice lunch?”
by Bouncy_Bouncy
Wednesday, October 24 2012, 9:02AM
“Lies! What about the consultants who found years of failings? What about the fact that you nearly lost your appropriate licenses on more than one occasion? How come your competitors are doing well? The market for health supplements is still strong. Seven Seas have been left behind. As someone directly affected by this, this PR BS is impossibly frustrating.
'The economy' has become a very convenient scapegoat for businesses who once thrived, got lazy and fat, and are now suffering due to complacency. As I have said before, this runs far deeper than being able to blame the economic downturn.
I also understand Turner was claiming he could save some jobs, 'just like he did with BAE'. What a slimy little soundbite machine he is. This plant is closing at the end of 2014, fact. Don't posture, blaming the current government whilst simultaneously making yourself look like a saviour when in reality you're simply using this sad turn of events as a PR stunt.
Let's see if he makes good on his word of being 'hopeful of savings jobs'. I'm not holding my breath.”