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UK government to close four Remploy corrugated plants

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UK government to close four Remploy corrugated plants

July 10, 2013 - 22:16

BRUSSELS, July 11, 2013 (RISI) -The UK government is set to permanently shut down the state-backed Remploy's paper packaging business, including corrugated plants in Norwich, Portsmouth, Burnley and Sunderland, as part of its plan to close down Remploy's nine factories across England and Scotland.

The decision follows the government's failed attempts to find interested parties to take over the plants to secure the existing jobs, said the UK's Minister for Disabled People Esther McVey in a Commons statement.

"There are no viable bids for the packaging business based at Norwich, Portsmouth, Burnley and Sunderland. These sites will now move to closure," McVey said. McVey did not specify the timeline for the shuts.

Shutdowns at all nine of Remploy's factories would affect 284 employees, including 234 disabled workers. According to McVey, the workers will be supported by an £8 million ($11.8 million) package to help them move into mainstream work.

McVey said that employees will be invited to individual consultation meetings over the next 30 days to "discuss the options and the support that will be available to them."

Remploy is the government backed multi-faceted business, funded directly through the Department of Work and Pensions for the training, employment and development of disabled people. Its packaging division focuses on corrugated packaging, litho printed cartons and litho laminated packaging.