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Cadbury plant closure angers government

10/02/2010 17:28

LONDON (Reuters) - Business Secretary Peter Mandelson criticised Kraft's CEO on Wednesday for failing to inform him of plans to close a Cadbury plant in western England with the loss of 400 jobs.

Mandelson said Kraft Chief Executive Irene Rosenfeld should have told him of plans for the Somerdale factory near Bristol when they met last week to discuss the takeover of chocolate company Cadbury.

"I think it would have been more honest, more straightforward, straight-dealing with the company and its workforce and also with the government, if she had told me what its intentions were," Mandelson told reporters.

Kraft, which is in the final stages of taking over Cadbury after a prolonged bid battle, said it had regrettably decided to accept that the plant would shut by 2011.

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"In our recent talks with Cadbury senior management, it became clear that it is unrealistic to reverse the closure programme, despite our original intent to do so," Rosenfeld said in a statement.

The Unite trades union also criticised the move.

"Promises were made to the Somerdale workers which it seems Kraft had no intention of fulfilling, and which appear now to have been a cynical attempt to curry favour with the British public during what was an extremely unwelcome and unpopular takeover," said Unite union official Jennie Formny.

"This is not just a tragedy for this workforce but is also sending a very worrying message to the rest of the Cadbury workforce."

(Editing by Elaine Hardcastle)

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