A FORMER managing director of Terry's today backed our campaign to save the York company - saying he could not understand the commercial rationale for moving production abroad.

Ian Johnston, who was managing director from 1963 to 1977, and then chairman until 1982, also criticised Kraft for "decimating" the factory's product list.

He said the axing of various brands over the years had left it in a "vulnerable, virtually one product situation - Chocolate Orange".

Mr Johnston said he believed Terry's could - and should - stay in the York area in a new factory on a smaller site, as the Evening Press and unions have been arguing.

"They would retain the staff skills and avoid redundancy," he said.

"They would much reduce their overheads by moving to a much smaller site, and retain most of the profit from selling the current site.

"I can understand the commercial rationale for a smaller site, but not the case for 'up sticks'."

Mr Johnston, of Brandsby, near Easingwold, said he had been deeply concerned, but not surprised, to hear of Terry's threatened demise.

He questioned whether the move of production to Sweden and Eastern Europe made sense, saying he believed Swedish labour costs were higher, and lower costs in Eastern Europe would not last for ever, because they had joined the EU.

He said it seemed very unlikely that Sweden had better technical skills than Terry's automated chocolate mill and high-tech Chocolate Orange manufacturing plant, on which so much had been spent.

"What price the name Terry's of York? This has always been regarded as a very significant asset which will be lost if manufacture is not here. What else can Terry's of York mean?

"Kraft say the overheads are too high and the site underused. This is true, but why? They have decimated the product list and left the company in a vulnerable, virtually one-product situation - Chocolate Orange."

A Kraft spokesman said today: "We are as sad as Mr Johnston and the people of York about the intention to close the Terry's site.

"However, it is clear that everyone involved recognises the need to move away from Bishopthorpe Road.

"In reaching this point, we believe we have considered all relevant alternatives, including a move to a smaller site nearby, but our analysis shows that this option is simply not sustainable, manageable or financially acceptable.

"We are consulting with our unions in detail at the moment on all of these issues."

Meanwhile, GMB union officials are currently mulling over confidential commercial information supplied by Terry's, which is believed to justify their decision to pull out of York. The union is expected to meet company representatives shortly to report their findings.

Updated: 10:25 Monday, May 24, 2004