WORKERS at Nestl Rowntree have been shocked by the sudden departure of managing director Chris White.

The tough-talking New Zealander - who took over at one of York's biggest employers less than two years ago - left the company yesterday "by mutual agreement."

The company said in a blunt statement that, in an extremely competitive UK confectionery market, Nestl "needs to improve its business performance".

It said Mr White would be replaced from December 1 by Paul Grimwood, a former managing director of Nestl's Petcare business in the UK, who is currently assistant to the head of Nestl Zone Europe in Switzerland.

Alastair Sykes, the Nestl UK chairman and chief executive, said that during the last two years - the period since Mr White became Rowntree boss - the company had been through major change.

"Intensive commercial and new product activity has stabilised market share," he said.

"But Nestl Rowntree now needs to deliver sustainable business improvement, based on the performance of its core brands."

He said Mr Grimwood, 42, whose family originally comes from the York area, had been instrumental in delivering consistently strong business performance when he was boss of Petcare.

Mr Sykes will take direct responsibility for the business until Mr Grimwood arrives.

John Kirk, of the GMB union, which represents many of Nestle's 3,000 York workers, said he was "quite surprised" by Mr White's departure, especially after the high-profile position he had been trying to portray.

He added: "I do not think that sales have been what they had expected."

Workers emerging from the factory last night spoke of their shock when news emerged about the managing director's departure. "It came completely out of the blue," said Barry Shepherd, 31, from the engineering department.

Mr White has been one of Nestl Rowntree's best-known bosses since he replaced John Sunley as managing director in December, 2003, rarely out of the headlines for long.

Dubbed The Bulldozer by some staff because of his uncompromising attitude, he delivered a blunt rallying cry to managers within weeks of his arrival. He called on them in a leaked memo to make more chocolates at higher prices to make more money, and warned that if these possibilities did not excite them, they "should be working somewhere else."

He also expected Nestl to regain second place behind Cadbury in UK market share after falling into third place behind Mars in 2003 for the first time in years.

A few weeks later, alarm bells sounded when a marketing magazine quoted Mr White as saying Nestl Rowntree was a business in crisis, but he claimed he had been quoted out of context and later said the company was "all about growing".

Mr White appeared to have the full confidence of Mr Sykes in March, when he told the Evening Press that he had appointed Mr White because he believed he had the vision, expertise and skills that were needed. "I haven't been disappointed," said Mr Sykes, who claimed Mr White had "breathed life into some of our most iconic brands" and achieved improved market share.

CHRIS White's shock departure today prompted Nestl Rowntree to seek to dismiss weeks of rumour and speculation about the future of its York factory.

Rumours have been swirling among workers that major job losses are on the way at the complex and that the whole factory - which employs about 3,000 people - is eventually set to close down.

One source told the Evening Press it was rumoured that the company wanted rid of 250 workers, so it could replace them with casual employees who could be laid off when not needed.

Another said that, according to rumours sweeping the site, chocolate production was going to wind down later this decade, with at least part of the factory to be converted into a hospital.

According to the rumours, after 2008 Nestl would no longer be bound by an agreement said to have been struck when it took over Rowntree in the 1980s, guaranteeing that production would continue on the site for 20 years.

A third suggestion, which came to the Evening Press from three separate sources, suggested total closure by 2010, with production moving abroad, again with the site being used as a hospital.

Nestl initially said it would not comment on rumour or speculation. But today, after being pressed again following news of Mr White's departure, it sought to dismiss such rumours once and for all.

A spokeswoman said that in a company of such a size, there were always changes going on, "so we can never rule out job losses altogether. But we do not plan any major organisational changes at Nestl Rowntree York site, as we focus on 'back to basics' business improvement with the appointment of new MD Paul Grimwood.

"Organisational stability will be important as we get the business back on track."

John Kirk, of the GMB union which represents many staff on the site, said today he had not heard such rumours, and claimed rumours helped neither the company nor its staff.

"I only deal with facts," he said, adding that it was in employees' interests for the company to be successful, as this improved job security.

How the Nestl statement was made

Nestl has announced that Chris White, managing director of Nestl Rowntree, has left the company by mutual agreement.

The UK confectionery market is extremely competitive and Nestl Rowntree needs to improve its business performance. The company has appointed Paul Grimwood, currently assistant to the head of Nestl Zone Europe, to succeed Chris White. Paul, whose family originally comes from the York area, was previously managing director of Nestl's Petcare business in the UK, where he was instrumental in delivering consistently strong business performance.

Alastair Sykes, chairman & chief executive of Nestl UK said: "During the last two years, Nestl Rowntree has gone through major change.

"Intensive commercial and new product activity has stabilised market share, but Nestl Rowntree now needs to deliver sustainable business improvement based on the performance of its core brands."

Paul Grimwood will take up his new role on December 1.

Nestl workers gave their reactions to the surprise news of Chris White's departure from the company

PETER Jones, 50, who works on the shop floor in assortments, said: "That's the first I have heard of him going. I have been here 28 years and communication between the management and shop floor has always been poor. I think Chris White did a good job. He got the place turned round. We'll have to see if his successor is just as good."

LISA Husband, 21, a receptionist, said: "I have never met him, but it's obviously quite a shock. I don't think many people knew about it and it's come quite suddenly."

BARRY Shepherd, 31, an engineer with the company, said: "It's just come out of the blue. "I don't really know him personally as he is quite a bit more senior than me. "He was just a face doing a job, but he gave the workers free coffee and I know that was popular."

Updated: 15:24 Tuesday, November 08, 2005