Jobs at Merthyr meat plant 'no longer sustainable'

St Merryn Foods have said the packing operation at a meat processing site in Merthyr are 'no longer sustainable' - putting around 400 jobs there at risk.

St Merryn Foods employs 1100 people in total in Merthyr.

The meat processing company, which employs 1100 people in total in Merthyr, say serious challenges facing the red meat sector in the UK - including declining markets, falling volumes, higher input costs and a fiercely competitive retail landscape - are to blame.

They've confirmed the decision does not impact the Beef and Lamb slaughter and cutting operations, with these continuing to operate as usual at Merthyr.

They say they'll be working with the Welsh Government, Job Centre Plus and Staffline to "seek opportunities for colleagues outside the business."

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.

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.

– St Merryn Foods statement

If the proposal goes ahead, jobs will be transferred to an alternative St Merryn site - most likely in Bodmin and Victoria in Cornwall.

St Merryn have confirmed this would not take place until January 2017.

Watch Hannah Thomas' report here.