A company supplying washroom products is to axe its Huddersfield operation with the likely loss of all 65 jobs.
Northwood Hygiene Products said the increased cost of raw materials was the main reason behind plans to close the site at Meltham Mills – formerly part of the David Brown tractor plant.
The company said talks with the workforce at Meltham Mills and their representatives would begin shortly.
It said that all 65 people on site were affected. Where appropriate, employees would be offered alternative employment at other Northwood sites. Production at Meltham Mills would be switched to other Northwood sites. The lease for the Meltham site ends at the end of September, 2018.
The firm said other action to keep the site open, including price increases for customers and reducing the product range, had been considered, but a spokesman added: “However, the Meltham site overhead cost has unfortunately required this proposed action.
“Customers will be unaffected by this closure.
“The collective consultation period will begin mid-April for a minimum of 30 days.”
Middlesex-based Northwood, which also has sites at Telford and Stockport, bought award-winning family firm Disposables UK in 2015.
The company supplies toilet rolls and other washroom, cleaning and hygiene products under brand names including Bay West, Optimum, Leonardo and Perform to customers including motorway services, hotels, football grounds and shopping centres.
Among its major contracts, Disposables UK supplied hand towels, toilet tissues and soaps for the 2012 Olympic and Paralympic Games. It has also supplied washrooms at Arsenal’s Emirates Stadium, the 02 Arena and Twickenham.
Northwood, which also has interests in tissue and paper towel production, waste paper recycling and distribution, said: “Both wood pulp and recovered paper have seen significant cost increases over the past 18-24 months and forecasts anticipate this trend will continue as global demand for wood pulp and recovered paper continues to outstrip supply.
“In actual terms, there has been an increase in recovered fibre costs of over 32% and on hardwood pulp of over 40%.
The increases in costs are due to several factors, primarily global economic growth, but also an increasing demand for paper-based packaging solutions as a result of rapid growth in the e-commerce sector as well as the fibre-based materials replacing plastic.
“When other macro-economic elements since Brexit are factored in, including the relative value of sterling in relation to the euro and dollar (which are the trading currencies of pulp and recovered paper), increased labour and energy costs, rising inflation and interest rates, we have been left with no option but to consider actions to reduce our fixed cost base.”
It added: “Following a strategic review of business operations following the change in market conditions the directors of Northwood Hygiene Products regret to announce the proposed closure of the Meltham converting site.”
