A statement sent to Printweek by Birmingham-headquartered Euro Packaging this morning (6 December) said: “We can confirm that two of our group companies, Jena and Euro Packaging, are currently undergoing a collective redundancy consultation.
“It has not been an easy decision for the businesses to embark on this route, but the ultimate goal is to create one combined business which is in a stronger position to endure the ever-increasing cost pressures and reduced margins faced by all the major players in the industry and thereby safeguard jobs in the longer term.”
The company said that as the process has only recently commenced, “we need to respect the process and allow it to take its course”.
At the time of writing, the business had not confirmed how many staff are employed by the two companies involved and whether all staff are involved in the process, or how long the collective redundancy consultation is due to last. However, Printweek understands around 400 staff are employed at the main Euro Packaging site.
“We can’t confirm numbers of likely redundancies at this stage because that is in itself subject to consultation with staff,” the statement continued.
“We have welcomed their ideas on proposed new team structures and ways in which compulsory redundancies can be avoided.”
The company added its priority is to keep affected staff “informed and apprised” of the progress of the consultation.
“It would be improper to go into specifics as this is a fluid and fast-moving process, but we can say that nobody has been placed at risk of redundancy.”
Euro Packaging produces food packaging and general packaging as well as items including bags, till rolls, catering disposables, hygiene papers, workwear, giftwrap, stationery and POS. Jena specialises in paper, plastic and aluminium foil products, and packaging consumables.
In its most recently filed accounts, for the year ended 31 December 2018, Euro Packaging achieved a turnover of £87.9m, up 4% year-on-year, and a pre-tax profit of £1m, down 47% year-on-year.
