TWO hundred jobs are to be lost at a North Yorkshire meat factory as part of a restructuring operation by its parent company, it was revealed yesterday.

Workers at the Malton Bacon Factory were shocked by the announcement that 200 people – about a tenth of the plant’s workforce of nearly 2,000 – would be axed at the factory, as part of owner Vion’s plan to cut 820 jobs across its UK operations.

Dutch-owned Vion, which took over the plant last August, said it will be moving all cooked meat production from Malton to Haverhill, in Suffolk – where 470 jobs will be lost – as part of its strategy to create “centres of excellence”.

However, the company will relocate the abattoir, butchery and some retail operations to Malton from Haverhill, which could see some potential for future job creation in North Yorkshire.

Vion said it had been conducting an extensive review of its operations in the UK – which has also led to the decision to cut 150 jobs at Cambuslang in Scotland – against a backdrop of a very competitive marketplace and over-capacity within the UK meat sector.

Last night, consultation got under way between unions and management at the Malton factory, one of Ryedale’s biggest employers, and regional groups pledged to support the company and workers through the months ahead.

Alasdair Cox, director of corporate affairs at Vion said: “Due to increasingly competitive pressures from the marketplace, we must continually look to optimise our production facilities to ensure sound foundations for the development of our UK business. In creating dedicated facilities at Malton and Haverhill, we will also be investing in both plants to build the business.

“We regret the need for these changes in our activities and have informed our employees and their union representatives of our commitment to consult with them.”

Regional development agency Yorkshire Forward last night pledged its support to the company and its workers.

Theresa Lindsay, assistant director of business with the agency, said: “Vion’s processing operation in Malton is vital to the local economy, and Yorkshire Forward is working closely with Vion in the restructuring of the business, to safeguard its future and ensure that the Yorkshire plant becomes a centre of excellence within the wider group.”

■ It was also reported yesterday that 91 jobs are to go at the Komatsu plant in Birtley, near Chester-le-Street.

The company, which makes earth-moving equipment, employs 550 people. However, a number of other firms across the region supply Komatsu – including Darlington- based engine maker Cummins.

Komatsu said it had experienced a 70 per cent fall in demand over the past year due to the downturn in the construction industry.