Louth based packaging firm Coveris has confirmed a ‘maximum of 40 redundancies’ could take place at the site due to a major restructure within the company later this year.
The news is a blow to the town’s economy and comes after recent improvements in employment figures.
Louth mayor councillor Sue Locking, said it was ‘tragic’ that a major employer was planning to make such a huge cutback. Coun Locking said: “It’s a great shame, and with it being a large employer in a small town, it’s pretty serious.
“I understand that businesses have to cut back costs if they can, but of course that’s no consolation to the people whose jobs are at risk.
“I hope that the company makes provisions, especially for long-term employees, and makes arrangements for relocating employees if possible.”
Coveris spokeswoman Sian Bates explained that the Louth site - on Brackenborough Road - has long been both an ‘extrusion and printed films facility’.
However, following recent investment and a strategic review, the site will now focus primarily on printed films while other sites within the Coveris Group will continue to specialise in extrusion.
The restructure is part of a three-year strategic plan with ongoing investment into the Louth site, £1.4 million of which will be made in the current financial year.
Ms Bates said: “As a further result of the strategic review, there will be changes to the management structure to ensure strategic alignment across process, equipment and service.
“The proposal is therefore likely to lead to changes in some job roles and up to a maximum of 40 redundancies across the site. All 250 site employees have been notified, and there will be a 90 day consultation process.”
The restructuring process is due to be completed by the end of November this year.
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