Seafood firm to shut factory in ‘devastating’ blow to local economy

Young’s Seafood plans to close a factory in Scotland, putting 450 jobs at risk as it grapples with “exceptionally challenging” market forces.

Britain’s biggest seafood producer said deli and meals production at the Pinneys site in Annan had been earmarked for closure.

Natural salmon production would be shifted from the Pinneys site to a factory in Grimsby, creating 200 new jobs, as part of the sweeping changes.

The company said a further 50 positions may also be created at its scampi factory in Annan to meet growing demand. The plans would see the Pinneys factory shut down by the end of this year.

The decision comes as speculation continues to swirl over a multi-million pound sale of the business. It is believed the firm’s private equity owners were working with boutique investment house Stamford Partners on a potential exit.

Chief executive Bill Showalter said: “Today’s proposals to close our Young’s Pinneys site does not reflect on the committed and skilled teams at Young’s Pinneys. They are a credit to our company and if these proposals do go ahead, we will work hard to maintain the employment of all colleagues throughout this transition.

“We have a long history of seafood production in Annan and whatever the outcome of the consultation we will continue to be a part of the community, given our other factory site within the town.”

The announcement came as Young’s landed three contracts with Marks & Spencer to provide chilled and frozen coated fish, natural salmon and white fish between 2018 to 2023.

The Grimsby-based group employs about 2,000 staff across seven sites.

Labour shadow rural economy secretary Colin Smyth described the closure as “devastating”. He said: “There are whole families employed at Pinneys which has served the town as a major employer for decades and this closure will be an utter tragedy for so many people in our area,” he said.

“A closure of this scale in such a small community will send shockwaves right across the whole, already fragile, local economy. It is also a massive blow to the Scottish food and drinks industry to lose such a long standing processor in Scotland. It’s just a few years since £3 million was invested at the site and production from elsewhere was moved to Annan.”

Scottish Secretary David Mundell said the UK Government would do all it could to help those affected, adding: “The news that Pinneys in Annan is to close its doors is a tragedy.”