Sun Chemical might close Watford plant

Sun Chemical is considering closing its Cow Lane plant in Watford as increasing environmental legislation and the poor economic climate in the UK hit business.

In a letter to the plants 120 employees, Richard Pettifor, Sun Chemical Europes corporate vice president and group managing director, said it was unlikely that the company would make the necessary investment to bring the plant in line with environmental legislation.

Any shortfall in compliance with legislation would be unacceptable to the regulatory authorities, including Watford Council, which must enforce it, he said.

The most pertinent piece of legislation is the European Commissions White Paper Registration, Evaluation and Authorisations of Chemicals (REACH), which would better regulate the use of chemicals but increase the administrative burden on manufacturers.

The GPMU claimed it had been given very little information on the companys plans. East of England branch secretary Vernon Robson said: Members feel fairly sure that it will close down. The company has said that the chances of it closing out of 10 are about eight.

He said the GPMU would meet with the chapel at Sun Chemical Watford to find out whats going on and to formulate a strategy.

Although the company claimed it hadnt yet made any decision over the future of the flexible packaging and gravure inks plant, which is located near Mirror Colour Print, it could close in 2005.

Pettifor said: We are trying to be as fair as we can be to our employees. There are no firm plans, we are exploring different options.

If the company were to move from Watford, which is the headquarters of Sun Chemical Europe, ink production would transfer to Sun Chemicals other UK sites. The office-based departments would also move to a new site.

The mayor of Watford, Dorothy Thornhill, has written to Pettifor requesting a meeting to discuss the implications of any closure.

Sun Chemical also makes flexible packaging inks at its Manchester and Bristol plants. The company has another 15 sites in the UK as well as one Sun Chemical Gibbon plant in Normanton, two Usher-Walker plants and one Ault & Wiborg site.

One industry source claimed the Watford plant had been on Sun Chemicals hit list for some time. However, the source said the plant had improved greatly in recent years under Pettifors stewardship.