150 job losses at carton factory

Tetra Pak, Wrexham Industrial EstateTetra Pak is considering ceasing production at its Wrexham factory, becoming a finishing warehouse

A cartons factory is planning to stop production with the loss of 150 jobs in Wrexham.

Packaging giant Tetra Park said the decision was “extremely difficult” but it hoped to keep another 135 jobs by creating a warehouse.

The company said it had to reorganise, with changes in the export market, which account for half its business.

Clwyd South MP Susan Elan Jones said she was “very shocked and sorry” and wants to meet management and unions.

“My key concern now will be to ensure that the local workforce receive the best possible terms.”

In a statement, the company – which has more than 21,000 workers worldwide – said it was starting a consultation on job losses at Wrexham industrial estate, where it has its UK headquarters.

Market changes included products being offered in other packaging formats.

Tetra Pak said it had been able to make up the losses by supplying export markets, including Russia and the Middle East, but these were now able to support themselves from 2011.

Rik Jacobs, Tetra Pak managing director for the UK and Ireland, said: “The decision to consult on Wrexham’s future has been an extremely difficult one, but is necessary to ensure our continued competitiveness.

“If the proposal to close production in Wrexham goes forward, regrettably there will be significant restructuring and job losses.”

Mr Jacobs said if the closure went ahead it would offer “fair and equitable severance packages over and above the statutory requirements”.

The company, founded in Sweden more than 50 years ago, produces cartons and packs for milk and juices, as well as food and wine at the Wrexham plant, employing around 265 workers.

Around 115 staff would remain, with 20 more recruited under the proposals.

Tetra Pak set up in north Wales in 1979.

“Our proposal is that we will remain in Wrexham with around 135 jobs,” said Mr Jacobs.

“We intend to create over 20 new jobs to operate a finished goods warehouse to service the UK and Irish markets and ensure we are in the right shape for future growth.”

The consultation period with staff and unions will last at least 90 days.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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