Up to 14 jobs could be lost at the DS Smith Sheetfeeding Plant on the Fairfield Industrial Estate, the company has confirmed.
In a consultation letter, leaked to the Louth Leader last week, it was confirmed that significant investments in new technology at the Louth and Blunham sheetfeeding sites could put a total of 54 jobs at risk across both sites.
The letter, dated May 20, says: “Regrettably, there is a risk that the improved efficiencies which the new investment would bring, and the proposed reallocation of some production to Blunham, could mean that there is a reduce requirement within the business for certain roles and that the business may therefore have to make redundancies.”
The letter goes on to confirm that the company will be seeking volunteers for redundancy, before adding: “I am sorry to tell you that if compulsory redundancies do become necessary, it is possible that your role could be affected.
“At Louth, it is anticipated that this would affect the Machine Operative and Loader group only.”
Following an enquiry from the Louth Leader, an official statement was released on May 29 in which Tony Foster, Senior Director at DS Smith Packaging, said: “We can confirm that DS Smith has today entered into a formal period of consultation with employees and their representatives at DS Smith Louth, over a proposal to restructure the business following an investment in new machinery.
“Regrettably there is a risk that this investment will bring about a reduced requirement in the business for certain roles, and as a result we may have to make redundancies in our Louth Sheetfeeding plant.
“We are offering our full support to the site’s employees and their families during this difficult period, and aim to complete this consultation period as quickly as possible so we can establish the impact on employees as soon as possible.
“In the meantime, we want to reassure our customers that the usual service and quality levels will be maintained.”