US company Chesapeake announced this week that it is planning to close a paperboard packaging plant in Congleton, England, because of "tough market conditions" for food and household packaging, reports US newspaper the Richmond Times.
Although a final decision on whether to close the plant has not yet been made, said Chesapeake spokesman Joe Vagi, the closure could affect as many as 125 employees. Some may be offered jobs at plants in Birmingham and Newcastle, the report continued.
Richmond-based Chesapeake acquired the factory in its purchase of First Carton Group Ltd. in October 2000. First Carton, a packaging supplier with plants in the United Kingdom and Germany, is being integrated into Field Group, a British packaging company that Chesapeake acquired in 1999.
Vagi said the proposed closure is part of "the overall integration effort" of the two companies. Pressure on carton prices also was a factor in the proposal to close the plant, the company said.