NESTLE Rowntree today announced it was selling its cocoa processing operations in York - claiming the move could lead to expansion and more jobs.

Bosses said all 27 jobs connected with cocoa bean activities at the Wigginton Road plant would be maintained when a family-owned US firm, Cargill Incorporated, takes over in October.

Nestl Rowntree managing director Chris White told the Evening Press today that the sale was necessary because of cheaper cocoa processing in Third World countries.

But he said the move could actually lead to further expansion and employment on the site, as Cargill looked to supply to other chocolate makers.

"It means we're actually increasing the ability of that facility to generate even more, because Cargill will have to get extra business for that facility," he said.

"We didn't just want to close down the facility, and this means it could actually lead to more jobs. Effectively everything will stay the same, but it's a way to outsource the business, give it a chance to expand and reduce our costs."

Nestl has already sold its primary cocoa processing plants in Italy, the Netherlands, Malaysia, the US and recently facilities in Brazil and Mexico.

Cargill is a long-standing partner of the company and an ingredient supplier.

Mr White, a tough-talking New Zealander, who took over at Nestl Rowntree earlier this year, told workers in February that if they made more money their jobs were safe.

In a statement, a Nestl spokeswoman said: "The proposed sale of the York cocoa processing operation and its team of 27 people would constitute a transfer of undertaking and would satisfy a priority, which is to provide continuity of employment on the site. Cargill would run the existing operation in its current location on the Nestl Rowntree York site.

"Under the terms of the proposed sale, Cargill will provide Nestl Rowntree with all cocoa liquor requirements for its confectionery products. In addition, it will be able to maximise the cocoa processing plant's supply to meet demand from other customers."

Nestl's cocoa processing activities in Hamburg will also be sold to Cargill.

Local GMB Union organiser John Kirk said today that it was "too early" to make any detailed judgements on the sale.

"We need to have further discussions with the company and the new employer to ensure that everything we've been advised of is correct," he said.

Kit Kat sales up 9%

SALES of Kit Kat have risen dramatically in recent months, the Evening Press can reveal today.

A senior source at Nestl Rowntree said that the brand's market share had increased by nine per cent in the last 15 weeks - because of the popularity of the limited edition Lemon Yoghurt Kit Kats and new low-carbohydrate bars.

Kit Kat sales over the last 12 months are also up by one per cent, he said.

The figures will be a huge boost to the long-term future of the Wigginton Road plant, which has seen the loss of hundreds of jobs in recent years.

The source said: "We can't make enough low-carb Kit Kats at the moment. The figures are really encouraging and don't show any signs of slowing down."

Updated: 10:46 Wednesday, June 30, 2004