DS Smith has announced both investment and expected job losses at its Kemsley Paper Mill.
The company is planning the closure of Paper Machine 4 (PM4), whilst proposing an additional investment of approximately £20m for its Paper Machine 6 (PM6).
The potential investment aims to modernise and expand the capabilities of PM6, allowing it to produce new grades of paper at an increased volume.
DS Smith said it was expecting job losses – it said the proposed closure of PM4 would impact the number of roles required at the site.
Discussions regarding the potential investment into PM6, proposed closure of PM4, timeline and support measures for affected employees are underway and also subject to consultation with employee representatives.
Rogier Gerritsen, managing director, paper, DS Smith said: “We are announcing a significant investment proposal for the Kemsley Paper Mill to ensure we are delivering the right products to our customers and remain cost competitive. At the same time, we recognise how difficult part of these proposals will be for some of our colleagues and our immediate focus is on supporting them through a formal consultation process.
“We are of the view that these proposals would support the realisation of Kemsley Paper Mill’s position as a cost-effective, future-ready mill whilst continuing to create long-term value for our people, our customers, and the local community.”
The announcement builds on a series of recent investments and initiatives at the Kemsley Paper Mill including a £48m upgrade to its fibre preparation line and the unveiling of a combined heat and power plant.