The firm has entered into a collective consultation process with the plant’s 59 employees.
VPK said it had taken the decision to close the plant in response to concerns over the plant’s long-term commercial viability.
In a statement released yesterday, 27 January, VPK UK and Ireland managing director Jeremy Anderson said: “It is with great sadness that we make this announcement today. We have not come to the decision lightly and I would like to express my deepest gratitude for all the hard work and commitment of our employees in Leeds.
“Over recent years, the business has faced significant challenges and, as a result, has been losing money. Despite everyone’s best efforts to reverse the situation, we do not see the outlook improving to the level or speed that gives us the confidence that we can prevent further losses.
“We have therefore made the difficult decision to transfer the current production volume to other VPK sites, ensuring our customers experience no disruption in their service.”
VPK operates eight other sites in the UK and Ireland, the closest being the firm’s Selby site, an hour’s drive away.
A spokesperson for VPK told Printweek that the firm would explore job opportunities for affected employees across the UKI business as part of the consultation with trade union GMB.
Anderson added: “Naturally we take our responsibilities to each of the 59 affected employees very seriously and will be working with them to find financial and practical support, while at the same time engaging local outplacement organisations, once the consultation period is complete.”
Louise Foster-Wilson, the GMB regional organiser representing employee interests at the plant, told Printweek that although the news had been a blow to members, VPK had been forthright and constructive in engaging with her and employees.
“Obviously, yesterday was devastating for people, because now they have this awful uncertainty,” she said.
“I intend to work very closely with the company to get the best outcome for my members that we can achieve, and see if we can get them employment elsewhere.
“I was allowed to be at the announcement yesterday [where VPK informed employees], and I will be there this afternoon when they give a presentation on what a consultation looks like. The formal consultation will probably start towards the end of next week, and they’re clearly keeping the union involved throughout. I cannot fault them on that at all.”
While the plant had been extremely busy during Covid, it had recently become more quiet – but employees had not expected the closure, Foster-Wilson added.
She said: “It has come as a shock for everybody, but I genuinely believe that the company has looked at every [option] it can, and that it feels it has no further options [other than to close the plant].”
In December, VPK announced it had entered into a 50/50 joint venture with Scottish packaging firm McLaren Packaging, combining VPK’s East Kilbride sheet factory with McLaren’s Port Glasgow corrugate factory.
