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Proposed closure announced
06 June 2018
Northwood Hygiene Products is proposing to close its converting site in Meltham, Yorkshire affecting all 65 employees.
The underlying reason is said to be the cost price inflation of raw materials. Caused by a number of factors including increasing demand for paper based packaging from the e-commerce sector and fibre based materials replacing plastic, when other macro-economic factors such as exchange rates, increasing labour and energy costs are added to the equation, it became apparent that actions to reduce the fixed cost base were essential.
The proposal is that production will be re-located to other Northwood sites. Where appropriate, Meltham employees will be offered alternative employment.
A consultation process has begun for a minimum of 30 days and the lease for the Meltham site terminates in September 2018.
Customers will be unaffected by this closure.