British Polythene Industries (BPI) is to close its black-sack factory in Stockton-on-Tees, it has announced this lunchtime, incurring the loss of 165 jobs.
The company, which makes industrial strength sacks and agricultural film, said the site has been losing money since 2006. This year, owing to the dire conditions facing the construction industry to which it mainly supplies, it will lose £2.5 million.
“Given the losses, the reduced demand in the market place, the requirement to reduce operating costs and the spare capacity available elsewhere within bpi.industrial, we believe that continued manufacturing at Stockton is no longer viable,” said the firm.
“It is proposed that production currently undertaken at Stockton will be transferred to other sites within the BPI Group, including Ardeer and Greenock, and could create up to 40 jobs during 2009. It is proposed to undertake a gradual scale down of operations to avoid any disruption to customers.”
It went on to promise that “every effort will be made to find alternative employment either within or outside BPI” for the affected staff.
The company supplies to manufacturers, hospitals, council and the food industry as well as construction. It has other UK plants in Ardeer and Greenock, Scotland.
