Alcan’s Midsomer Norton, UK, food packaging plant is to be closed. It is one of two UK sites the group plans to shut: the other is the Aerospace, Transportation and Industry hard alloy extrusion plant at Workington.
Alcan says the Midsomer Norton site, which produces flexible packaging for the UK snack market, has been adversely affected by a declining market demand and high raw material costs. It is expected to close by the end of 2006, with all 218 employees being affected. Alcan Packaging would continue to supply the UK snack market from its remaining European sites.
Richard Evans, president and ceo, states: "Alcan reviews its portfolio on an on-going basis to ensure the competitiveness and long term viability of each of its businesses. The proposed measures are due to challenging business realities and consistent with consolidating our operating footprint to leverage core competencies and improve efficiencies."
"After thoroughly exploring and examining various alternatives, this proposed reorganization represents the most viable solution to ensure the long term competitiveness of Alcan’s European assets. The company is committed to carrying out this proposed reorganization process transparently, so as to find the best solutions for the affected employees," says Jean-Christophe Deslarzes, senior vice president, human resources.
The proposed closures are expected to incur a pre-tax, non recurring charge of some $40M in the second quarter of 2006.
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