Meltdown in UK packaging manufacturing
Alcan is proposing to close its UK factory based in Somerset with the loss of 220 jobs. The company has fourteen sites based in the UK.
The Somerset site produces paper, foil and plastic film for cartons and pouches.
Peter Ellis Amicus national officer for the paper and packaging sector said,“We are extremely disappointed that the company has decided to close this site. These are high quality jobs and very important to the local economy. It is depressing that Alcan has found it difficult to continue at this site and that this is yet another indication to the meltdown in manufacturing in the UK, he said.
SIG Combibloc, one of Europe’s largest carton manufacturers is to close its UK manufacturing operation in Houghton-le-Spring, Tyne & Wear with a loss of 125 jobs.
Three factories in Europe were put at risk largely due to a shrinking market for
cartons and a trend towards plastic containers.
The increasing cost of raw materials, energy costs and reduced profit margins added to the problem.The sales and marketing operation will remain at Tyne & Wear.