Novelis today announced the proposed closure of its Bridgnorth, UK, foil rolling and packaging operations in 2011 and the consolidation of those activities into other plants in its European system.
The proposal is subject to consultation with Novelis employees at Bridgnorth, which currently number 319.
The proposal aims to improve the competitiveness of Novelis' overall European foil and packaging production system in response to over-capacity in the European foil market, increasing competition from low-cost countries, poor market conditions and long-term outlook in the segments served by the plant, and high exposure to currency fluctuations. Furthermore, the Bridgnorth plant is at a technical and logistical disadvantage compared to other plants in the Novelis Europe system.
"As a leader in aluminum foil and packaging, Novelis remains committed to these markets," said Tadeu Nardocci, president of Novelis Europe and senior vice-president of Novelis Inc. "Today's proposal is primarily to address European market and structural conditions, not because of any performance issues at Bridgnorth. Indeed, I would like to pay tribute to the professionalism of the highly-skilled team of employees at the site. The proposed consolidation of our foil and packaging businesses at the other plants in the Novelis Europe system would enhance our overall competitiveness and our sustainability as Europe's leading supplier."
If, after employee consultation, the proposal is implemented, existing customer orders will be fulfilled and clients will be contacted individually regarding the future handling of their business within the Novelis Europe system.
Source: http://www.novelis.com/