A packaging company is making 40 people redundant.
DS Smith Packaging in Blunham is restructuring its business. The company is also cutting 14 jobs in Louth, Lincolnshire.
The corrugated cardboard business’ letter of Tuesday, May 20, which was leaked to the Chronicle’s sister paper in Louth, says: “We have proposals for further investment within our sheetfeeding operations including the proposed installation of a new state-of-the-art corrugator and a new material handling system at Blunham.”
Currently 163 people are employed at the site in Blunham.
Tony Foster, sector director at DS Smith Packaging, said: “We can confirm that DS Smith has entered into a formal period of consultation with employees and their representatives at DS Smith Blunham over a proposal to restructure the business following an investment in new machinery.
“Regrettably there is a risk that this investment will bring about a reduced requirement in the business for certain roles and as a result we may have to make redundancies in our Blunham Sheetfeeding plant.
“We are offering our full support to the Blunham site’s employees and their families during this difficult period and aim to complete this consultation period as quickly as possible so we can establish the impact on employees as soon as possible.
“In the meantime, we want to reassure our customers that the usual service and quality levels will be maintained.”