Factory to move to Poland with 180 jobs at risk

Workers at a labelling factory say they have been told their site is to close and work moved to Poland.

About 180 people work at the MCC factory on the Llantarnam Industrial Estate in Cwmbran, Torfaen, making labels for food and drink products.

The site has been operating for more than 20 years, but workers have been told the company plans to close with work transferred to Poland and Romania.

In a statement MMC said there was "no immediate" change for staff and customers, and the "proposal is subject to review".

One worker, who did not want to be named, said the announcement came out of the blue.

"The factory goes 24/7 – it was very, very busy during lockdown, we had lots of orders, but things have declined since," they said.

"The company are saying the closure plan is a proposal but it seems set, the mood isn't hopeful.

"Workers are trying to get meetings with the Welsh government, unions and the company to see if anything can be done to save it.

"The mood is very down, people angry because they're not getting answers.

"There are not many printing jobs out there."

Alan Slade, who represents the area on Torfaen council, called the proposals "devastating" for both the local economy and the wider supply chain.

He said: "There will be people who have been here for years and it is a very important employer - 180 people - we haven't get too many of those in Cwmbran and we can scarcely afford to lose them."

"We want to attract businesses here. This business park did struggle through Covid but all the signs were that we were recovering.

"So this has come as a bit of a shock and a body blow."

In an email to staff, MCC president Fred Noel, said: "This was a difficult but necessary decision that reflects changes in regional demands.

"We are working very closely with the local team and customers to review options and, if needed, redistribute volumes to other sites."

Nick Thomas-Symonds and Lynne Neagle, politicians who represent Torfaen, issued a joint statement saying they were "deeply concerned" by the news.

"We are in regular dialogue with officials at Torfaen Council and the Welsh government to see what can be done to prevent this closure," they said.

"With so many jobs at risk, a full and proper consultation with staff should be carried out."

The factory is part of a global company with sites around the world including the US, Europe and Australia.

With a global annual revenue of about £2.4bn the company is an industry leader in labelling, but that comes with a boardroom objective to cut costs and increase profits.

The closure of the Cwmbran site is a huge blow to the workforce and the wider community, with the letter to staff implying that its Welsh operation was no longer viable.

MCC's broader "growth strategy" involves expanding operations in Poland and Romania, and it has sites in more than 25 other countries with a workforce in excess of 12,000 people.

Attempts to boost growth in the UK will require more companies to expand their operations here, rather than shut them down.

As the Welsh government prepares to host an investment summit later this year, the impact of MCC's closure will prompt questions about the trading conditions in Wales and the support available to any new business wanting to invest.

Announcing the summit, First Minister Eluned Morgan said: "Economic growth is a top priority for me and the Welsh government will do what it can to support Welsh business and help attract even more investors into Wales."

MMC said the proposal was subject to review and discussion through a collective consultation process, as required by law.

"This process is to take several months and no decisions will be made until the end of that process."

It added that the proposal is "intended to rebalance UK production based on current demands and capacity across our UK plant network".

"We are working closely with all Cwmbran customers and teammates to discuss all options, which potentially may eventually include production transfers and some job redundancies," it added.