Nampak reviews UK blowmoulding capacity, cuts 80 jobs
Nampak Plastics Europe has announced it is to cut 80 jobs in the UK following the collapse of the huge co-operative Dairy Farmers of Britain (DFB) – one of the company’s major customers.
The company said the posts would be lost at the support plant at its UK base in Newport Pagnell as a result of being forced to cut back production capacity there.
Review of blowmoulding capacity
The milk bottle producer said the demise of DFB on June 3 and the economic recession had led to a “complete review of Nampak’s blowmoulding production capacity in the UK”. However, the company declined to give any details on potential capacity cutbacks or for how long these might last when contacted by FoodProductionDaily.com.
The firm added that Newport Pagnell would continue to operate as a strategic support plant for its customers.
Nampak managing director Eric Collins said the company regretted the move but had been forced “to respond to the tough market conditions” it was trading in. The company had now entered into a 30-day consultation period with its employees.
“This has been a very difficult decision to make. However, during these challenging times, we remain focused on ensuring that we continue to deliver a high quality service and product to our customers,” said Collins.
Gloomy forecast
The announcement by the company seems to bear out a survey conducted by the British Plastics Federation (BPF) last month that forecast the sector could see significant job losses in the wake of the severe economic downturn.
The body predicted 6,800 jobs could go in the plastics industry after more than a third of all companies taking part in the investigation said they expected to cut staff over the next 12 months
UK sentiment in the plastics industry was also revealed to be pessimistic with the BPF declaring “the industry appears to be bouncing along the bottom of a deep trough”. Its survey found 44 per cent of companies expected their UK sales turnover to remain stagnant over the nest 12 months, while 35 per cent expected a modest increase of between five and 10 per cent.
“The survey does indicate some increased confidence in UK and export sales, but certainly no ‘green shoots’ and, like other manufacturing sectors, there are more job losses to come,” said BPF Director-General Peter Davis.
The companies surveyed were also fearful of increases in energy and raw material prices in the next 12 months which could potentially serve to stifle recovery.