Chesapeake Looks to Close European Plant

Following the integration of First Carton's packaging operations with those of Field Group, a complete review of the available capacity to supply the food and household sector within the enlarged group has been undertaken. As a consequence of pressure on carton prices, a proposal has been made to close the Field First operation at Congleton. This should enable the division to optimize capacity and significantly improve the utilization of existing equipment.

Tough market conditions have made it necessary to review the best options to create a sustainable business that can attract ongoing investment and best serve the requirements of our customers. Field First is firmly committed to the food and household sector and this action is considered essential to continue to offer customers the quality and service that this market demands. Following this reorganization, it is proposed that the division's other carton operations, at Birmingham and Newcastle, will be further developed, enhancing their positions as models for service and efficiency.

If the proposal is implemented, Field First Birmingham and Newcastle will support Congleton's current customer requirements. This will only take place following detailed discussion with customers and with their full cooperation. The proposed closure would take place over the next six months and, as a result, it is anticipated that there may be up to 125 redundancies, which will include a number of divisional-based support roles. However, it is expected that this action may create opportunities at other Field First factories and it is hoped that some employees may wish to consider these. The company will be fully consulting with employee representatives in relation to these proposals and will propose an employee support program.

If the reorganization takes place as proposed, Field First will ensure that customer service is maintained at the highest level during this period. This process will be managed professionally to ensure the supply of packaging to customers is uninterrupted. Field First will be closely liaising with its customers to ensure they are kept fully informed of any further developments.