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Jobs are under threat following proposals by VPK Packaging to close its West Yorkshire factory amid what it describes as “significant challenges”.
The corrugated packaging specialist says nearly 60 workers are affected by the move which will see the closure of its Leeds Bradford Industrial Estate facility near Yeadon. A collective consultation is now under way with VPK suggesting the site could be closed by the end of August.
Bosses at VPK, which mainly supplies food and drink producers, would now begin consultation with a local trade union, and said the decision had been a difficult one.
Jeremy Anderson, managing director of VPK UK and Ireland, said: “It is with great sadness that we make this announcement today. We have not come to the decision lightly and I would like to express my deepest gratitude for all the hard work and commitment of our employees in Leeds. Over recent years, the business has faced significant challenges and, as a result, has been losing money.
“Despite everyone’s best efforts to reverse the situation, we do not see the outlook improving to the level or speed that gives us the confidence that we can prevent further losses. We have therefore made the difficult decision to transfer the current production volume to other VPK sites, ensuring our customer’s experience no disruption in their service.”
VPK has several UK sites including Selby, Desborough, Banbury, East Kilbride and Wellington. The business is part of the wider VPK Group – a Belgium-based multinational with plants in Europe and China.
Most recent accounts for VPK Packaging Limited show the business made £1.8m investment across the UK bases in 2023 and that it was expecting further growth at each site. Turnover in 2023 was £166.9m, down from £191m, while the firm made a return to operating profit – converting a £1.2m operating loss into a £4.7m operating profit.
He added: “Naturally we take our responsibilities to each of the 59 affected employees very seriously and will be working with them to find financial and practical support, while at the same time engaging local outplacement organisations, once the consultation period is complete.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber