BOCM Pauls is to close its mill in Alton with the possible loss of 34 jobs.

News of the closure broke on Tuesday, bringing to an end a 29-year working relationship with the animal feed company in the town.

Officially opened in June 1974 on the Mill Lane industrial estate, BOCM Pauls has been hit by a recession in the pig and poultry industry and is having to rationalise its business in order to remain competitive.

In a statement this week, the message for local employees was stark: ÒAs part of a range of measures to improve the competitiveness of its business and deliver an improved and focused service to its customers, BOCM Pauls is to cease production at its feed mill in Alton.Ó

The action, the statement explained, is the consequence of Òa continuing and severe, downturn in the market for pig and poultry feed as the UK industry cuts back production in the face of cheap imported products.Ó

The mill will close in September 2003 and standard diets currently produced at Alton will be transferred to Radstock, Bury St Edmunds and Shepshed.

For BOCM PaulsÕ chief executive Bill Mayne the company has no option. ÒIt is vital that we operate our mills as close to capacity as possible in order to ensure that our operating costs are kept to a minimum. In view of the livestock density in the area and trading conditions in the pig and poultry sector, we have decided there is no longer sufficient business to support the operation of two mills in the south.Ó

Mr Mayne continued: ÒOver the past five years the UK pig industry has contracted by more than 40 per cent

ÒAnd the ÔavailableÕ market for poultry feed has also significantly contracted,Ó said Mr Mayne.

ÒGiven the current business climate, it is vital we operate as close to optimum capacity as possible. Regrettably, to safeguard the long-term future, we have had to take some difficult decisions to improve efficiency and reduce costs.Ó

Unfortunately, according to Mr Mayne, this reorganisation will result in a number of redundancies but, he stressed, Òthe company will do all it can to assist those affected in any way possible.

ÒHowever, the actions are essential to maintain and improve our competitive position in the market. They are a positive response to the challenges faced by UK agriculture and reflect our determination to strengthen the performance of our business.Ó

Commenting on the closure, BOCM PaulsÕ regional manufacturing manager, Steven Read, was keen to assure Alton staff that TuesdayÕs decision was not of their doing.

ÒThe decision to close the mill is in no way a reflection on its products and services or the staff employed there,Ó said Mr Read.

ÒEveryone at Alton has worked hard and it is unfortunate that the mill closure has been caused purely by the severe downturn in feed demand.

ÒWe are consulting with our staff and will do our best to help them find alternative employment.Ó