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Graphic Packaging set to close Contego UK food carton plant

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Graphic Packaging set to close Contego UK food carton plant

June 19, 2013 - 21:51

BRUSSELS, June 20, 2013 (PPI Europe) -Graphic Packaging is planning to close the Gillingham, UK, food carton plant it acquired when it took over Contego Packaging in December last year.

The firm has already started a 45-day consultation with the trade union Unite. According to the union, Graphic Packaging has proposed ceasing operations at the Gillingham facility by September 30. The shut would impact 170 jobs.

"Graphic Packaging acquired Contego Packaging and A&R Carton during the latter part of 2012. Since this acquisition, the company has been conducting an in-depth assessment of our manufacturing needs to create a sustainable platform to support the needs of our customers and to secure future business growth across Europe," a spokesperson for Graphic Packaging toldPPI Europe.

Full details of the closure reportedly have yet to be agreed with the union and the employee information and consultation forum. Until then, business activities will continue as normal, Graphic Packaging said.

"The majority of work currently being carried out in Gillingham will likely transfer to the sister facility in Leeds, and will preserve and potentially increase jobs and skills at this site," the spokesperson said. She added, however, that Graphic Packaging is also discussing some reductions in specific roles in Leeds as it optimizes across its European manufacturing facilities.

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