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Packaging: BPI to shutter Stockton site

British Polythene Industries PLC (BPI) will close its Stockton on Tees site, transferring its production of heavy duty sacks and industrial and agricultural films to other BPI sites and affecting some 165 jobs. Part of the company’s industrial division, more than 40% of its output goes to the construction sector—an end market that has slowed considerably over the last half of 2008.

BPI said in response to losses posted by the site in 2006 and 2007, it made efforts to reduce costs and increase efficiencies, but in spite of those moves, the broader economic downturn led to £2.5 million loss in 2008. Work at Stockton will be transferred to BPI sites in Ardeer and Greenock, with the potential to create up to 40 jobs in 2009. The estimated closure costs, including asset write downs and equipment relocation, will be £5.0 million of which £3.5 million will be in cash.

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