Council's vow to help staff affected by planned closure of Mondi factory in Scunthorpe
The Mondi factory in Scunthorpe, where plans are in place to cease manufacturing operations
By Scunthorpe Telegraph | Posted: 3 May 2018
Council bosses have pledged to do all they can to help workers affected by the proposed closure of a Scunthorpe factory.
A consultation period is under way over plans to cease all manufacturing operations at the Mondi packaging plant on the town’s Foxhills Industrial Estate by the end of this year.
If the plans go ahead, 72 of its 79 staff will be affected.
Speaking after the company announced its intentions, North Lincolnshire Council leader Rob Waltham said: "We always set up a task force when we have got major employment changes and we will do the same here.
"We have got planned job fairs and we will work with the business to help re-skill or get people back into work as soon as possible.
"We will do all we can to support anyone who is affected and we will work with the business to make sure they can exit the site and try to support a new business to go there.
"It is sad when we lose a business but the economy is really strong at the moment in terms of new business start-ups and our major employers are still taking people on."
Why plans are in place to close Scunthorpe's Mondi factory and what led to the announcement
The packaging business was brought to Scunthorpe more than 30 years ago by businessman Marc Wheatley, who later sold it to Austrian-based Mondi.
This week’s announcement about the plans to cease manufacturing at the factory comes after a down-sizing operation last year which led to 48 redundancies at the Scunthorpe site.
That saw part of the factory’s work transferred to the company’s sister plant in Deeside.
A statement from the company this week said: “Mondi has announced a 45-day consultation with employee representatives concerning a management plan to cease all manufacturing operations at its Scunthorpe site in the UK by the fourth quarter of 2018.
“Mondi has implemented various strategic initiatives to enhance the site’s competitiveness, including streamlining and specialising the UK plant network's production processes.”
Allan Lock, managing director at Mondi Consumer Goods Packaging UK, said: “We have rigorously explored all options for the plant’s future.
“Our conclusions show that the only viable way forward is unfortunately to cease production at Scunthorpe.
“If the plan goes ahead, a total of 72 of the 79 people currently employed would be affected.
“We understand that this will be a challenging time for employees and their families and we are committed to treating employees fairly throughout the process.”
The company said it would follow all legal procedures in accordance with UK labour law and remained fully committed to its UK customers and would continue to serve them from its UK and continental European network.