Broadley managing director Chris Dew said the wet-glue label market was highly price-sensitive, with falling margins the norm rather than the exception.
The redundancies are expected to come from the finishing area, where Polestar plans to replace three existing cutting lines with two semi-automatic Polar label cutting lines.
We have no alternative but to automate our process as much as possible to remain competitive in this tough marketplace, added Dew.
The group today entered a 30-day consultation period with staff and the GPMU. Broadley employs 130 staff.
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