Mondi said it plans to close the Deeside Industrial Park near Liverpool, which employs 167 staff, and a factory in Nelson, Lancashire, with 41 jobs affected – expected by this summer.
Last October Mondi’s share price fell to their lowest level in almost three years as the paper and packaging giant reported softer paper demand and lower prices had hit its third-quarter revenue.
Both affected plants create bags, pouches and laminates for the consumer industry.
A “change in demand for the niche products” was cited as the reason for the decline in business at the sites, and a 45-day consultation process is expected to begin imminently.
“Mondi sees no alternative than to start a consultation process on the potential closure. Employees will be given support during the consultation and implementation of the ultimately agreed proposal, and Mondi will follow all legal procedures in accordance with UK labour law. Mondi remains fully committed to flexible plastics packaging and will continue to serve its UK customers from its wide network of production facilities across Europe.”
Mondi closed its Scunthorpe flexible packaging site in May 2018, tho it has made significant investment in other European operations, including a €30m investment on a corrugated plant in Germany and a substantial investment at a Polish plant.
