Plans to close Mondi’s Scunthorpe site are underway after the group announced a 45-day consultation with employee representatives concerning a plan to cease all manufacturing operations by the fourth quarter of 2018.
The news comes just two months after the group released its full year results from 2017, which stated that Mondi Group as a whole made an underlying operating profit of €1,018 million, which is up 4% from last year.
According to the group 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 Mondi Consumer Goods Packaging UK, explained, ‘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,’ said Mr Lock, ‘and we are committed to treating employees fairly throughout the process.’
