It is the third plant to shut in 12 months, following the loss of the Tring and Crown Point sites.

A 30-day consultation process involving Amicus GPMS has started, with 98 jobs at risk. The closure has been blamed on the UK carton industry's weak profitability due to "overcapacity, customer and supplier power and pricing levels".

"Following the board's review of the three current operations at Gillingham, Crewkerne and Leicester, the outcome is the proposed closure of the Leicester site," said MY Cartons divisional managing director Stuart Goode. "We regret very much having to make this proposal."

He added that the move was made to reduce the short-run cost base to compete "successfully in the highly competitive supermarket own-label sector".

Staff at the Leicester plant could be offered alternative employment elsewhere in the MY Group. The site has a turnover of around 9m.
The decision follows MY Cartons' closure of its Crown Point site in Leeds with the loss of 100 jobs, and that of its smallest operation in Tring, Herts.

Story by Philip Chadwick