Berry cites ‘low demand’ as it plans second plant closure

The company announced the move this week (8 August), saying it has seen “reduced demand” from a number of its sectors at the site.

The Greenock site supplies a range of markets including construction, industrial packaging and healthcare, Berry explained. The company added that activity in these markets is reduced and this has affected activity levels at the BPI site.

Berry’s move to close its Greenock facility comes after it also closed its Bridgend plant last year, with the loss of 77 jobs. Berry bpi said at the time that it was not “financially viable” to continue operating the plant.

Job losses

The move has been met with opposition from local politicians. Councillor Stephen McCabe, leader of Inverclyde council, said: “This is extremely disappointing news and I’m sure deeply worrying for the workforce whose jobs are reportedly now at risk.

“I would urge the company to rethink their decision to close the manufacturing unit and see the value in having such a skilled and dedicated workforce.

“Officers will be engaging directly with the company to see if there is anything we, as a council, can do to prevent the closure of the manufacturing facility and, crucially, save as many of the 65 jobs that could be on the line as possible.

“We will also reach out to the government to see what support they could potentially offer and that affected staff are properly supported through the partnership action for continuing employment (PACE) scheme alongside the council’s own business support services.”

Recycling

Berry is one of the longest established plastics recycling businesses in the UK having incorporated British Polythene Industries (BPI) into its activities.

Berry Global is the American parent company and is an international business which says that it serves some of the largest brands in the world, operating with a “local delivery model” which it believes offers better service and solutions for customers and communities in which it operates.

The company also has a plastic recycling division, which has not been impacted by the move. However, the low demand noted by the company has been seen across the recycling sector.

Last month, the Bureau of International Recycling’s plastic division said, “prices are continuing to fall because of cheaper virgin material prices and wider economic uncertainty, which means less new packaged products are being made.”

The division heard that demand for raw materials is extremely low, and this is resulting in “massive stocks”. This has been further impacted by “consistently low prices of virgin PET in Asia” (see letsrecycle.com story). 

The site is based on Greenock road and is an important local employer.

‘Difficult Transition’

Berry has affirmed its “commitment to supporting its workforce throughout this difficult transition”.

The company has initiated redundancy consultations with employee representatives to mitigate the impact on its workforce and it has “pledged to explore viable alternatives for affected employees, both within and outside the Berry Group.”

The company’s financial shared service centre and head office administration, also situated in Greenock, will remain unaffected by these impending changes.