A Scottish based packaging firm has made 90 redundancies in one of its operations south of the border, following the loss of a major contract.
The news will instigate a business restructure of its consumer arm.
British Polythene Industries (BPI) announced the job losses just before Christmas. All jobs will go at its Worcester plant, after the Greenock based company lost the contract for supplying bread bags to a large UK bakery.
Despite the huge cuts though, and an expected £1 million cost in restructuring its consumer side of the business, the firm still expects its market forecasts to be met. The firm released a statement, saying that after restructuring:
“[the loss would not have] any noticeable impact on future profit”
With the changing economic environment of recent years, many firms in Scotland have had to restructure. Many have taken the opportunity to restructure their financial strategies too; with factoring helping firms to both survive and thrive.
The BPI trading update statement went on to say:
“Trading remains broadly consistent with that disclosed in our interim management statement on 8 November.
“Demand has been slightly better than last year and we currently anticipate that underlying volumes for the year, excluding additional volumes from the acquisition of Flexfilm, will be marginally ahead of 2012.”
The BPI Worcester plant, which prior to the announcement about the redundancies employed over 300 staff, is responsible for printing and converting high quality film wrap into food packaging.
It was part of the Flexifilm Group operations, prior to that firm being bought in a multimillion deal by BPI in 2012.