May 1 2008
As of July 2008, Corus intends to close CPP’s operation in Bergen, Norway. CPP Bergen has a production capacity of 150,000 tonnes and employs 260 people. A formal consultation process will begin immediately with the Bergen Trade Unions.
Before the end of 2008, Corus will furthermore propose to reduce capacity at CPP’s Trostre Works in South Wales in the UK by 150,000 tonnes. This may involve a reduction of 290 positions in operational and functional areas. Also in Trostre, a formal consultation process will begin immediately with the Trade Unions. This reduction is part of a programme to strive towards a sustainable position of its packaging steels operation in South Wales.
In addition, CPP has launched a significant performance improvement plan in the IJmuiden Works, focussed on quality, productivity and service.
Hugo Loudon, Managing Director, Corus Packaging Plus said: “It is after extensive consideration and with great sadness that we make this announcement today. CPP has an excellent record of continuous improvement and it is despite the best efforts of our employees that we must take these measures. However the European tinplate market continues to experience very difficult market conditions due to significant overcapacity. To ensure the longer-term viability of our packaging steels business, we must take action to improve our operating results.”
Hugo Loudon underlines that Corus will act according to its high social standards: “I will ensure that we do everything reasonably possible in both Bergen and Trostre to minimise the impact on employees affected. At the same time, it is our aim is to continue to be a quality packaging steels supplier. However, these measures in themselves are simply not enough to ensure the sustainability of our business. Therefore, in addition to the reduction in capacity proposed today, CPP will be seeking a minimum 30% price increase for the period January to March 2009, reflecting the significant increases in raw material costs. CPP is also considering moving towards annual contracts running from April-March to better align with raw material negotiations."
Posted May 1st,2008