Linpac Plastics is planning to close its UK clingfilm factory in Sedgefield, County Durham with the loss of 50 jobs from the 52 permanent positions at the plant.
Consultations are underway with the staff and the factory is expected to shut by the end of June.
The closure decision follows an in-depth investigation into the clingfilm business, which, says Linpac, is being subjected to increased competition with a resulting impact on prices in “a very difficult market”.
The former Filmco factory underwent downsizing in July 2004 when there were 73 compulsory redundancies. At the time the company said the unit had been making losses for the previous five years, despite investment of £1.8m (€2.6m).
