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Hundreds of northern bakers are to lose their jobs as they are replaced by robots at Fox's Biscuits.
Northern Foods, which makes ready-made own-label foods for the supermarkets and owns Fox's, says it is to spend £26.5 million — more than double the group's profits in the last six months — introducing automated technology at its biscuit-making factories in Batley, Kirkham and Uttoxeter.
That will see redundancy notices for about 220 workers in the new year. However it is set to get worse: the company is looking at closing one of its factories from 2011, which puts 1000 jobs under threat.
Northern Foods today reported profits of £12.9 million for the half year to 26 September, flat on an underlying basis against last year when restructuring costs put the group £17.1 million in the red.
Brits munching their way through biscuits during the recession have prompted the Fox's investment. Northern also reported that, while it is selling more cheap sandwiches and salads, there has been a slowdown in ready meals.
The interim dividend is held at 1.55p.
