East Kilbride closure mooted

Polestar has signalled what could be the beginning of the end for its East Kilbride plant by downsizing the operation and announcing plans to lay off almost half of the workforce.

The group is decommissioning the factory's remaining two web presses, along with one of its three Targetbound demographic binding lines.


The plant, which runs 24/7, currently employs 208 staff.

 

East Kilbride's future has been under scrutiny for some time. In 2001 Polestar reduced the plant's capacity by taking out two old KBA webs, resulting in 40 job losses. However, until now the business had been a key site in relation to the mammoth Viking Office Products catalogue contract, and Viking was the plant's largest customer.

 

Polestar has shifted the emphasis of this contract to be "group-wide" and Rvai in Hungary now handles production and distribution on the continent. East Kilbride's Rotoman N web, CTP kit and the Targetbound binding line are set to be transferred to other Polestar plants, with some of the kit likely to go to Hungary.


East Kilbride managing director Jim Mellon will continue to have key account responsibility for Viking going forward.


Consultation with East Kilbride's workforce and the GPMU is underway, and Polestar expects  to complete the process by 14 May. Polestar said employees had also been notified that a proposal to close the business was likely at some point, "although no final decision has been made".

 

Separately, Polestar has announced further progress on its plans for a new greenfield gravure site. See separate story here.