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Tobacco plain packaging bites as Parkside announces redundancies

Parkside Flexibles Europe is set to make redundancies following the closure of a major tobacco packaging customer in May.

With the implementation of plain packaging legislation in the UK to be phased in from 20 May, and the general decline of tobacco sales in Europe, Parkside is reducing its staff levels at its headquarters in Normanton, West Yorkshire.

The firm’s managing director Nick Smith confirmed the impact of the market changes and customer closures has prompted the decision.

“It is with deep regret that we have commenced the consultation process with the Parkside workforce today and we are proposing a number of roles will be made redundant as a result of the reduction in tobacco related work.”

He said the company has been working hard over the past two years to reshape its business in response to this predicted market situation and diversify into a broad range of higher growth speciality packaging markets.

“We have invested in our APEX innovation strategy to meet brand and retailer needs and despite securing a number of new significant contracts, as well as volumes with alternative tobacco brands, the impact is simply too large for us to continue at current staff levels. Our Asian business remains solid and with this move we will place Parkside on a more secure footing for growth in the UK packaging market going forward.”

Parkside specialises in printing, lamination, laser, thermal and sustainable solutions for the food, drink and tobacco sectors.

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