Gateshead factory closure puts 430 jobs at risk

Hundreds of jobs are set to be axed at a North East factory which supplies supermarkets with fruit and juices.

Orchard House Foods blamed rising costs and a shortage of staff for its decision to shut its site in Gateshead.

The business, which supplies the likes of Marks & Spencer, Tesco and Pret A Manger, plans to relocate production to its base at Corby, Northamptonshire.

It has started a consultation over the 430 jobs at risk of redundancy and wants to move by the end of November.

A "significant number of jobs" will be created at Corby, with support for colleagues from Gateshead who wish to relocate, it said.

Chief executive Steve Corby said: "Despite making significant investments in our Gateshead facility over a considerable period in an effort to turn around its financial performance, it is unfortunately still making losses that make it unsustainable over the long term."

It was not a decision which had been "taken lightly", he added.

"Like many other businesses across the UK, we have been suffering from a series of economic and business challenges.

"They include rising energy, raw material, transport and labour costs.

"There has also been a shortage of available staff to work at our Gateshead site."