McVitie’s changes tune on UK investment with £68m boost
The company behind McVitie’s is set to invest millions in the UK despite the latter’s boss ‘dunking’ on the UK as an investment destination last year.
London-based snacking giant Pladis will funnel £68m into its facilities, including £21m for its Jaffa Cake factory and £33m for the home of Jacob’s Cream Crackers.
The funds will be used to increase capacity, capability and productivity through the introduction of more automated lines and updated factory infrastructure, the company said.
The news comes just months after McVitie’s boss slammed the UK as an investment destination, warning that it had become less attractive as a place to do business.
“It’s becoming harder to understand what the case for investment is,” he said at the Confederation of British Industry (CBI)’s annual conference.
Now, however, Pladis has billed the £68m investment as a “vote of confidence” in Britain’s North West as a “manufacturing powerhouse”.
McVitie’s owner hails ‘important milestone’
The company, which employs 16,000 people across 27 bakeries and factories in 11 countries, said it has new data that showed pladis’ manufacturing operations generate almost £240m for the regional economy each year.
Formed in 2016, Pladis produces several well-known UK biscuit products, including Hobnobs, Digestives and Mini Cheddars.
Pladis’ UK and Ireland managing director Mete Buyurgan said that the announcement was an “important milestone” in “unlocking capacity for our growth story”.
“We have a fantastic suite of much-loved brands, baked by dedicated colleagues, and we have a responsibility to continue to nurture these brands for customers and consumers across the world.
“The news of these investments we are sharing today will enable us to achieve this,” Buyurgan said.
In addition to the factory-specific funds, a pot of £12m has been allocated to support infrastructure across the firm’s UK sites, while £2m will be invested in Carlisle’s bakery staff.
Group revenue at Pladis increased by eight per cent year on year to £2.8bn, according to its most recent financial disclosures.
This current investment rollout is scheduled to be completed by the end of 2026.