By Matthew Legg Business editor

Last updated 13:34, Wednesday, 14 May 2008

WORKERS at Carlisle’s Cavaghan and Gray food factory will not be affected by a decision to axe more than 700 jobs at a sister plant in Lincolnshire.

Cavaghan and Gray owners Northern Foods said a decision to stop production at the Fenland Foods site in Grantham would have no effect on its operation at Eastern Way, Harraby.

The company announced yesterday that it was “mothballing” the plant after Marks & Spencer withdrew production of its Italian ready meal range from the site. The move could see more than 700 people laid off.

A spokeswoman for the firm said: “This is very specific to Fenland which hasn’t been efficient for a long time.

“This won’t have an effect in Carlisle which is running very full. Staff there need not be worried by this.”

She added that Cavvies would be unlikely to gain extra work because it was already operating at full capacity.

Negotations with Marks & Spencer about other contracts are ongoing. The Leeds-based firm said it would carry out a 90-day consultation process and support the 730 workers affected at Grantham.

The GMB union described the news as “tragic”.

Stefan Barden, chief executive of Northern Foods, said: “Our immediate task is to support our loyal employees through the consultation period.”

Mr Barden said the factory, which was built for Marks & Spencer in 1987, could remain mothballed for as long as three years while other opportunities were examined.

“It’s a little bit tired. We would want to refurbish it if we were to do something else. Those are the discussions we want to start with other customers.

“Those discussions could take two to three years. It’s just unrealistic to keep the workforce on during that time period,” he added.

Rising prices for ingredients are hitting profits in the food sector, although Northern Foods posted a 3.5 per cent increase in revenue in its last set of results.