Will Spalding Gousto factory closure have ‘big impact’ on the area?

News that a factory is planning to shut will ‘have a big impact on the area’ says a leading councillor.

However, it is hoped that this week’s news is not part of a growing trend, and that other employers in the area will eb able to offer work to those facing redundancies.

Gousto says it has decided to close its oldest factory, which is near Springfields, and hopes to redeploy some of its workers to its other site in Clay Lake.

The firm, which supplies supplies recipe kit boxes to homes, has not released the number of redundancies.

“I’m really sad to see Gousto are closing down there because they were a lot of high-tech jobs there, well paid jobs, and I always thought that was going to be really good for the area,” said Coun Nick Worth, South Holland District Council’s portfolio holder for People, Places and Economy.

“It will be sad to lose them. It was a leading company in the area who had really seemed to take off nationally and that will have a big impact on the area.

“I think a lot of it’s down to the products being sold. I’ve been a Gousto customer myself and it’s not the cheapest thing to get into, especially when people are trying to cut back on spending.”

However, Coun Worth hopes that the employees being made redundant will be able to find alternative work in the area.

“Job-wise there are still a lot of companies out there looking for employees. In the wider employment scale I think we’re still ok (i the district), no matter how disappointing it is.”

More than 11,000 people work in the food manufacturing industry within the district and with the Gousto site closing not long after news that Sutton Bridge’s Bakkavor factory ceased operations, it is hoped this is not the start of a pattern.

“I think we’ve definitely been bucking the trend lately and whether that’s starting to catch up with us now I don’t know,” Coun Worth said, emphasising the fact that large contracts can regularly hold factories in their thrall.

“Supermarkets are very dominant as far as factories go around here.

“We feel a bit more confident when factories have contracts with lots of different companies as they have back up.

“It’s a challenging time as people are struggling with food prices and that has a knock-on effect to markets.”