The 2 Sisters Food Group has revealed plans to cease operations at its Llangefni chicken factory, resulting in over 700 job losses.

In a statement, the company said it needs to “make operational changes to help us overcome the continuing challenges facing the food manufacturing sector.”

“Regrettably, the review shows our Llangefni factory is not sustainable. It is old, one of our smallest sites and lacking space to be efficient.

“The cost to produce here is higher, and it would require significant investment to bring it up to the standards of our other factories. Our products can be made more efficiently elsewhere across our estate,” it added.

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As a result, 2 Sisters has proposed to cease operations at the factory, putting the site at a risk of closure.

“Clearly this will be extremely disappointing news for our Llangefni colleagues, and it is no reflection of their continuing hard work and commitment,” the statement added.

“However, we have a duty to remain competitive and protect our wider business on which many thousands of people depend.”

“Our key priority now is to hold meaningful consultations with all affected employees and their representatives and explore the full range of options before making any final decisions about the closure of the site.

“These options will include all redeployment opportunities in the region with the help of all relevant support agencies, both inside and outside the business.”

This follows a review of the company’s UK poultry division.

2 Sisters acquired the factory in June 2013 following the UK, and in its published accounts, to the year ended 31 July 2021, the company reported a £95.5 million loss and a pre- exceptional loss of £44.9 million.