SAICA speaks out on redundancies at Hartlepool corrugated facility

Yesterday (3 June), SAICA announced it was to make 26 redundancies at its Hartlepool corrugated packaging factory as a result of falling sales, exacerbated by the recession.

Managing director of SAICA Pack in the North Andrew Chamberlain told Packaging News that restructuring of the company was only possible now that the £100m acquisition of SCA’s UK corrugated business had been completed.

During the sale process, SAICA was unable to make strategic changes to the business.

“We need to get on and get into the business to address what we need to do to make it fit for the future,” said Chamberlain.

According to Chamberlain, when the Hartlepool site initially dropped its third shift in February, there was no intention to make any redundancies.

He said that the company’s intention was to run as a two-shift operation in the short term and focus on moving the business in a “slightly different direction”.

The Oaksway Industrial Estate-based factory currently manufactures corrugated packaging for customers including Nestlé and several breweries.

It recently invested in E-flute manufacturing technology and plans to invest in new equipment to develop a new range of E-flute products.

“SAICA’s investment of £42m in the UK corrugated box market is a huge statement of intent that the company is committed to the sector,” the company added.

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