Cepac Proposes Closure of Darlington Site, Putting Up to 63 Jobs at Risk

Cepac Ltd has announced plans to close its Darlington site, potentially resulting in the loss of up to 63 jobs as the company seeks to address heavy financial losses at the facility.

The site manufactures small corrugated trays marketed under the Flutepac brand. Under the proposed closure, all production at Darlington would cease.

Cepac began a 30-day redundancy consultation with employee representatives on September 9. The company said final decisions will be made following the consultation process.

Steve Moss, Group Managing Director, said the proposed closure followed slower-than-anticipated market development for the Flutepac portfolio of fibre-based corrugated trays.

“It is regrettable that we have had to make this announcement,” Moss said. He added that, despite significant investment in new equipment, the accelerated growth planned for the Flutepac portfolio had not materialised.

If the closure plans are implemented, Cepac said it would make every effort to support affected employees in finding alternative work at other Cepac sites or elsewhere in the local area.