DS Smith’s UK Paper division, St Regis, is blaming today’s “difficult trading environment” and rising energy costs for its proposed closure of its Sudbrook Mill in Monmouthshire,
The plant employs 135 staff and produces some 150,000 tonnes annually of semi-chemical fluting paper, a speciality corrugated case material. Consultations have begun with staff “with a view to reducing and mitigating the effects” of the closure, which it is anticipated will be implemented by the end of May.
St Regis says energy costs at Sudbrook Mill, the Group’s most energy-intensive production operation, have “approximately doubled” over the last three years. The company has been unable to pass the increased costs on to its customers and the mill is now making annualised operating losses of some £3m. It has also seen falling demand for its product as customers switch to alternative, “lower cost” types of paper.
