2 Sisters Food Group has announced proposals to close its retail packing operation at its St Merryn plant in Merthyr Tydfil.

The company is proposing to move the work to another plant in Cornwall. It is said that this could result in 350 potential job losses.

A spokesperson for 2 Sisters said: “As part of a wider strategic review, we can confirm we are consulting with colleagues about the viability of our retailing packing operation at our Merthyr Tydfil meat processing site.

“Regrettably, the red meat sector in the UK faces many serious challenges including declining markets, falling volumes, higher input costs and a fiercely competitive retail landscape. This extremely difficult environment means the packing operation at Merthyr, which includes the packing of steaks and chops, is no longer sustainable.

“We do not take the decision to launch this review lightly, but it is the only way our business can survive and prosper for the longer term.

“Our main focus now is to begin discussions with our colleagues to explore every available option to mitigate the potential loss of this function, which will include seeking relocation and redeployment opportunities elsewhere in the group.

“This decision does not impact our beef and lamb slaughter and cutting operations and these will continue to operate as usual at Merthyr Tydfil. The site will continue to employ up to 700 colleagues.

“We will also be working with the Welsh Government, Job Centre Plus and Staffline to seek opportunities for our colleagues outside the business.”

The Union of Shop, Distributive and Allied Workers (Usdaw) has announced its plans to support its members during the consultation process.

Nick Ireland, Usdaw divisional officer, said: “This proposal will be devastating news for the loyal and hardworking staff at the Merthyr Tydfil site, especially so in the run up to Christmas. Usdaw will be doing everything we can during the 45 day consultation process to look in detail at the proposals with a view to safeguarding jobs, maximising future employment at the Merthyr Tydfil site and securing the best deal possible for staff. We will be giving our members our full support, advice and representation during the consultation process.”