Morrisons has bought the Farmcare potato packing business at Carnoustie.
The plant will be used to store, grade, pack and procure potatoes for customers of the Big Four supermarket.
As well as being a shopkeeper, Morrisons makes most of the fresh food that is sold through its 492 stores, giving it control over the quality and freshness of its products.
The acquisition of the Carnoustie plant will mean Morrisons now has 17 food manufacturing sites around the UK.
Morrisons will commence Transfer of Undertakings Protection of Employment (TUPE) discussions with Farmcare Carnoustie staff as part of the agreement.
Farmcare, with 11 estates across the UK, will supply a range of produce to Morrisons, including potatoes.
Andrew Thornber, managing director of Morrisons Manufacturing, said: “Our acquisition of the Carnoustie site, and our relationship with Farmcare, shows Morrisons commitment to working directly with growers in Scotland and offering our customers the very best quality fresh produce.”
Richard Quinn, chief executive of Farmcare, commented: ‘’The deal with Morrisons is a strong strategic fit.
“We look forward to an ongoing relationship which allows Farmcare to concentrate on what we do best: growing great crops and working closely with Morrisons as a supplier of choice.”
The future of the 90 staff at Clayholes Farm in Balmachie Road was thrown into doubt last year following the end of a major contract.
Farmcare embarked on a periof of consultation with its staff following the end of a significant packing contract.
Redundancies were feared on that occasion.
