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Jan 13 2009 By Adrian Pearson, The Journal

Union officials try to save fire-hit food factory

UNION officials representing around 400 workers at Findus are set to meet with administrators in a bid to save the frozen food factory.

Newcastle Production, which runs the plant in Longbenton, North Tyneside, called in the administrators following the collapse of one of its main backers.

The news comes days after fire destroyed a 3,000 square metre section of the factory causing £20m worth of damage and halting the production line.

Around 400 GMB members working at the site attended a meeting yesterday to find out the prospects for their jobs after Icelandic bank Landsbanki called in administrators at the weekend.

The Findus plant, which opened in 1983 and employs 420 people, makes crispy pancakes as well as a number of ready meals.

Based at Balliol Business Park, Longbenton, it is expected to close for at least four weeks while fire damage is assessed.

Chris Preston, GMB organiser said they hoped there would be scope to sell it on as a going concern.

He said: "This is devastating news for North Tyneside. This is a long-established factory making a product range familiar to all households in the UK.

"The order book for this factory is full. However, the company has been hit by a series of other problems that puts its future in doubt. The devastating collapse of its bankers, Landsbanki, was followed by the fire which destroyed parts of the production line."

Mr Preston said that the union was seeking a meeting with the administrator Zolfo Cooper. He said: "The GMB want to examine ways in which the business can be bought as a going concern and production resumed when the factory has been cleaned up."

Click here to read the Chamber of Commerce 'North East Business Barometer Q4 2008' report, in full.