The Directors of Northwood Hygiene Products (NHP) are proposing the closure of their converting site in Meltham, Yorkshire, affecting all 65 employees.
The underlying reason for the proposed closure is in response to raw material cost price inflation. Both wood pulp and recovered paper have seen cost increases over the past 18-24 months, and forecasts anticipate this trend will continue as global demand continues to outstrip supply.
Northwood stated that there has been an increase in recovered fibre costs of over 32%, and 40% for hardwood pulp.
Along with global economic growth, increasing demand for paper-based packaging solutions from the e-commerce sector and fibre-based materials replacing plastic are also named as contributing factors.
The proposal puts forward that production will be relocated to other Northwood sites. Meltham employees will be offered alternative employment, where appropriate.
Northwood’s lease for the Meltham site terminates in September 2018, and a consultation process for the closure has begun for a minimum of 30 days. Customers will be unaffected by the closure.
