A multi-million pound investment could take place to ‘re-focus and modernise’ ingredients firm RC Treatt in Bury St Edmunds.
Parent company The Treatt Group is considering the move which it said would help ‘drive’ profits at RC Treatt in Northern Way, after a particularly tough year.
Richard Hope, group finance director said: “It will not be a small sum that we invest in the site.
“We have been at Northern Way since 1971, we employ 175 people there and its not on our agenda to move from the site.”
Instead, he said the company was to discuss several phases of redevelopment at RC Treatt to start ‘in a year or two’s time.’
He said the aim of the move is to increase profits which would inevitably lead to more jobs.
The Treatt Group supplies ingredients to the flavours, fragrances and cosmetics markets
Its prelimary results for the year to September 30, said RC Treatt had a tough year with the price of orange oil , its largest stock, falling by 60 per cent.
“A weak start in quarter one saw reveunue at RC Treatt fall four per cent to £43.5m.
“The significant price volatility of orange oil impacted on RC Treatt’s sales and contributions in the year,” its statement said.
Treatt Group is made up of three companies – Treatt USA, Earthoil in Kenya and RC Treatt its largest and oldest company.
It says a fall in operating profits of 18 per cent was ‘signicantly better than had been originally forecast.’
It parted company with group managing director Hugo Bovill in July and paid him £600,000 in compensation.
It said profits before this payout recovered to £5.1m, the second highest on record.