Northwood Hygiene Products Ltd is proposing the closure of its converting site in Meltham, Yorkshire, affecting all 65 employees. The underlying reason is the cost price inflation of raw materials.
Caused by a number of factors including increasing demand for paper based packaging from the e-commerce sector and fibre based materials replacing plastic, when other macro-economic factors such as exchange rates, increasing labour and energy costs are added to the equation it became apparent that actions to reduce the fixed cost base were essential. The proposal is that production will be relocated to other Northwood sites and, where appropriate, Meltham employees will be offered alternative employment.
A consultation process has begun and the lease on the Meltham site ends in September 2018.
The company has stated that customers will be unaffected by this closure.