Karro Food Group to invest £10m across business
Karro Food Group, one of the leading suppliers of British pork into the retail, trade and foodservice industries, has announced a £10m investment into processing and production across its operations.
The capital investment programme, financed from cash generated by the business, will be carried out over the next 12 months at a number of Karro’s UK manufacturing facilities.
The programme of upgrades comes as the company continues to deliver on its turnaround programme following its establishment as an independent company by UK-based private equity house, Endless, in January 2013.
The investments, all due for completion in 2015, include:
- £6.5m investment into new chilling and processing technology at Karro’s facility in Cookstown, Northern Ireland;
- £1.5m upgrade to the gammon processing line at its Malton site and to expand the company’s fresh pork and gammon production and slicing capability;
- £1m investment in new kill line in Malton to facilitate export and domestic supply;
- £1m in new packing lines at Karro’s Haverhill site.
Karro’s Malton site, the company’s headquarters, will also see the launch of a new Malton Innovation Centre, which will drive new product development and R&D for the business.
These latest investments follow Karro’s announcement that it delivered an EBITDA improvement of £10m in its first year as an independent business; an important milestone in the company’s turnaround strategy.
Di Walker, executive chair at Karro Food Group, said: “This significant investment demonstrates Karro’s commitment to use the latest technologies to enhance our already excellent product quality and provide the best service possible to our valued customers.
“It is further evidence that we are well-ahead of our five year turnaround plan, and gives us added capability to develop our strategic retail and trade partnerships and enter new markets.
“The underlying performance of the business continues to gain momentum and we are extremely positive about the outlook for Karro Food Group. Furthermore, we will be in a position to report another year of significant financial improvement when we release our 2014 accounts in the coming months.”