By Jennifer Cosgrove

DUNDEE HAS been dealt another jobs blow with the announcement last night the Patak’s factory in West Pitkerro is to close with 60 redundancies.

Early shift and back shift workers at Patak’s Frozen Foods Ltd were called into meeting at 2.45pm yesterday and were informed that, because of the rising costs of chicken and rice, the factory would be closing its doors at the end of March.

The decision at the factory, which cooks and freezes traditional and ethnic meals for branded and own-label products sold in major supermarkets, was condemned by Dundee East MP Stewart Hosie, who said he was “gutted” about the news of further job losses.

It is one of a long line of manufacturing industry cuts to hit Dundee.

The Wood Group and Lomax Mobility revealed over the festive period they were to close their factories in the city. These blows followed job losses at Tesco and NCR earlier last year.

It is estimated there have been around 1600 job cuts in Dundee in the last year, 1000 of them in the manufacturing sector.

One Patak’s Frozen Foods employee, who wished to remain anonymous, contacted The Courier shortly after yesterday’s meeting.

He explained, “We were told their costs are going to go up and that they were going to have to spend £600,000 a year more on chicken and between £150,000 and £200,000 more on rice.”

He went on to say employees were told this expenditure would make the factory uneconomical and, therefore, it would shut at the end on March.

The company also announced it was about to start a 30-day consultation period.

The former Top Hat Foods factory at West Pitkerro industrial estate has undergone changes in the last decade.

The factory was faced with job cuts in 1997 after Top Hat Foods was bought over by Kirpac Ltd and its sister company Patak (Spices) Ltd.

In May last year, the firm was sold again, this time to Associated British Foods (ABF) in a deal costing over £100 million.

Employees were told it was “business as usual,” but there was still uncertainly about whether the takeover might have an impact on jobs.

The Courier received a statement last night on behalf of ABF, which read, “Patak’s Frozen Foods Ltd has been faced with difficult trading conditions for some months.

“In the current year, the business has experienced exceptional increases in raw material prices, in particular chicken, and has been unable to recover these costs in sales price increases.

“As a result, we are proposing to close manufacturing at the Dundee site by the end of March 2008, and cease trading soon after. This will, unfortunately, result in the loss of 60 jobs, and we are liaising with all the individuals concerned.

“A period of consultation has begun with everyone on site. As a company, we recognise our responsibilities to our employees and will do everything possible to minimise the impact of this on them.

“The company would like to stress that this decision has not been taken lightly, and that prior to this decision, it explored a number options in an attempt to maintain the production at the site.”

Dundee East MP Stewart Hosie said, “I’m gutted and extremely disappointed for the work force.

“Obviously, I will make contact with the company at the earliest possible opportunity to see what can be done.”

Mr Hosie said the announcement made it all the more important that a meeting he has secured with Enterprise Minister Stephen Timms goes ahead as soon as possible.