PaperWorks Industries, Inc., a leading integrated North American paperboard packaging supplier, announced plans today to optimize folding carton production across its network of nine North American converting facilities. As part of this effort, operations at the company’s Baie D'Urfé, Québec, Canada manufacturing facility will close permanently by the end of February 2016. “We considered many different options across our folding carton manufacturing footprint in order to improve service levels for our customers, strengthen our competitiveness and support long-term growth. Ultimately, our decision was driven by the desire to position folding carton production closer to geographic areas in which the majority of our customers are located,” said Kevin Kwilinski, president and chief executive officer, PaperWorks.
Mondi is set to bring an end to its UK manufacturing with the planned closure of its two remaining UK production plants, putting 208 jobs at risk.
The paper and packaging group has announced a minimum 45-day consultation with employee representatives concerning a proposed plan to close all manufacturing operations at its Deeside Industrial Park site in Flintshire and its Nelson, Lancashire site by the second half of 2020.
Union Unite said the workforce has been told that the work from the two sites, which produce a wide variety of flexible packaging, bags and pouches, will now be transferred to other locations within Mondi’s global business.
A Mondi spokesperson said: “The business has implemented various strategic initiatives over the past two years to streamline operations and enhance the cost-competitiveness of both sites, however due to the change in demand for the niche products produced at these sites, Mondi sees no alternative than to start a consultation process on the potential closure.
“Mondi understands this is a particularly challenging time for employees and their families and is committed to treating people fairly throughout the process. 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.”
A Mondi spokesperson told Printweek it already serves around 100 UK-based customers from its production sites in Poland, Germany, Hungary and Austria and that its service levels “will remain unchanged”.
While the factory closures would put an end to Mondi’s manufacturing in the UK, the business said it remains open to consider future opportunities “as and when they arise” in support of its strategic objectives.
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