DS Smith set to shut down St Regis paper machine

PM1, the oldest of St Regis’s paper machines, produces approximately 75,000 tonnes of corrugated case material (CCM) each year.

In a statement, the company said: “Customer expectations regarding the specification of products produced by PM1 continue to increase, and this means considerable investment would be required to ensure the machine’s future competitiveness.

“In addition, there has been a decline in the overall demand for CCM in the UK. In the light of the investment cost and the expectation that the current difficult market conditions will continue for some time, PM1 is no longer considered to be viable.”

The company said consultations with employees and their representatives were underway.

DS Smith group communications manager Peter Aubusson told Packaging News: “We will look for every opportunity to redeploy the staff within the company, but until we have completed the consultation we don’t know exactly which positions will be affected.”

The move, which it is proposed will be implemented by the end of April, is part of a raft of cost cutting measures which will cost the company around £23m and would result in an annual savings of £25m. 

St Regis currently operates four paper machines at the Kemsley site, producing a total of more than 800,000 tonnes a year.

The paper machines at Kemsley recycle more than 850 tonnes of waste paper a year, which is supplied by DS Smith’s Severnside Recycling business.

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