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170 jobs under threat as US owners plan to close Graphic Packaging International factory in Gillingham

Up to 650 workers face being relocated
Up to 650 workers face being relocated

Graphic Packaging International's plant at Gillingham Business Park is due to shut in September following a statutory consultation - putting 170 jobs under threat.

Unite, Britain's biggest union, has demanded an urgent meeting with the company, saying it will be urging bosses to look at all possibilities for re-location and the best possible deal for the workforce.

Unite national officer Ian Tonks said: “This is a very difficult time for the workforce and they have a right to be angry that they face redundancy. Unite will be demanding the company does everything possible to support the workers affected.

"At a time when unemployment is high and good jobs are hard to find, employers should be going out of their way to find the best deal possible for workers who have given years of loyalty.”

Graphic Packaging International, based in Atlanta, Georgia, took over Contego Packaging Holdings in December and with it the Gillingham plant.

Since the acquisition, it said it had been conducting an in-depth assessment of its manufacturing needs “to create a sustainable platform to support the needs of our customers and to secure future growth across Europe.”

In a statement from its US headquarters, the company said: “Regretfully on June 5, Graphic Packaging announced a possible closure of the Gillingham facility with the potential loss of 170 jobs. The company is currently consulting with all involved including Unite the Union and the Graphic Packaging Employee Information and Consultation Committee on this proposal.

“These are always difficult decisions, but it is a necessary step in the company’s continuous efforts to effectively align and optimize its supply chain footprint. We do realise the impact of this decision on our team members; their families and their communities and we remain committed to providing assistance under our policies to help mitigate the impact of this decision where possible.”

It added: “Gillingham has been justifiably proud of its ability to produce high quality products for the food industry; however, the company has recognized that the Gillingham facility does not play the same role in its larger organization.”

Full details of the closure had yet to be decided with the union and until then business would continue as normal.

The majority of the work in Gillingham is likely to transfer to a sister facility in Leeds, Yorkshire.

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