Scunthorpe factory set to close with more than 70 jobs at risk
By Scunthorpe Telegraph | Posted: 2 May 2018
Talks have started over the closure of a Scunthorpe factory putting over 70 jobs at risk.
The Mondi packaging plant on the Foxhills Industrial Estate looks set to cease manufacturing and if the plans go ahead, 72 of the 79 staff will be affected.
Bosses today said the company has announced a consultation period with a view to ceasing operations later this year.
A statement from the company 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 Mondi factory in Scunthorpe, where plans are in place to cease manufacturing operations (Image: David Haber)
The company says it will follow all legal procedures in accordance with UK labour law and remains fully committed to its UK customers and will continue to serve them from its UK and continental European network.
Staff redundancies at the company were announced last July as part of a plan to downsize the business.
The packaging business was brought to Scunthorpe over 30 years ago by businessman Marc Wheatley who later sold it to the Austrians.