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Mayr-Melnhof Packaging to close Bootle folding box plant


Source: MMP
29 Mar 2012 − 

Mayr-Melnhof (MMP) announced today that it will close its Bootle folding box plant due to difficult market conditions in the UK. The decision comes after weeks of strikes and industrial action at the facility.

In February, Mayr-Melnhof had announced that almost 50 of 180 employees were to be dismissed by March due to the difficult conditions of the UK packaging market.

According to MMP, high wage costs and a shrinking consumer goods industry that started to outsource production abroad a long time ago were the reasons for the redundancies. As a consequence, competition had risen massively in the course of the past few years, the company said.

Various media reports and industry sources however stated, the job cuts were MMP’s response to the loss of a major contract volume. The staff at the plant reacted with strikes and was then laid of temporarily by the company. Production has been idle since 18 February, according to earlier union reports.

Cereal giant Kellogg’s told EUWID in the week of 19 March that is was experiencing temporary disruptions in deliveries of cereal cartons.

Mayr-Melnhof is now closing the facility that last had 109 employees. The company said it had tried to raise the competitiveness of the plant over the past years, but recent economic circumstances made the closure inevitable. Furthermore MMP stated, customers would not be affected by the closure as they are being serviced by MMPs European production network already.

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