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320 jobs under threat as Novelis proposes packaging plant closure

Novelis is looking to close a foil rolling and packaging facility in Bridgnorth in a move that threatens up to 319 jobs.

Novelis said the move was a response to overcapacity in the European foil market and would help improve the overall competitiveness of both its packaging and foil business in Europe.

The proposals are subject to consolidation with employees at the Bridgnorth plant that Novelis said was "at a technical and logistical disadvantage compared to other plants in the Novelis system".

Novelis also highlighted increased competition from low-cost economies, poor market conditions in the segments served by the plant and exposure to currency fluctuations.

"The proposal is primarily to address European market and structural conditions, not because of any performance issues at Bridgnorth," said Tadeu Nardocci, president of Novelis Europe.

"The proposed consolidation of our foil and packaging business at the other plants in the Novelis Europe system would enhance our overall competitiveness and our sustainability as Europe’s leading supplier."

The local council has pledged to do what it can to help the 319 workers whose jobs are under threat.

Councillor Mike Owen, Shropshire Council’s Cabinet member for economy and waste, said: "The announcement by Novelis is extremely concerning news but Shropshire Council is determined to do all we can to help the company and its employees at this difficult time.

"We will be working closely with the other relevant agencies to offer Novelis employees as much help and support as we can."

Novelis said that, if the closure goes ahead, existing customer orders would be fulfilled and clients contacted individually regarding future supply.