Kraft to shut one Cadbury plant in UK

LONDON - Kraft Foods says it will close Cadbury's Somerdale plant in Britain as the British candy company originally planned, saying the plans are too far advanced to reverse.

Kraft, which got final approval this month to acquire Cadbury, previously said it hoped to keep the facility open.

But Kraft, based in Northfield, Illinois, determined during extensive talks with Cadbury leaders that the process of closing the facility was too far along and will close it by 2011.

Kraft did not immediately disclose how many workers will be affected at the plant in Keynsham, near Bristol.

The company said Cadbury had already invested US$157 million ($226 million) in building new production facilities in Poland and the majority of its lines have been transferred there - or will be by midyear.

"While this is a difficult decision, we have moved quickly to end any further uncertainty," Kraft chief executive Irene Rosenfeld said yesterday.

Kraft's acquisition of Cadbury had many workers and unions worried about job cuts.

But Kraft said it remained committed to investing £30 million ($68 million) to improve its factory in Bournville. Shares of Kraft rose 61c to US$28.97.

- AP