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Almost 60 jobs will be affected by the closure of packaging company VPK’s Leeds facility, which is trying to counteract significant financial losses
VPK UK and Ireland, part of the VPK Packaging Group, has confirmed that it has entered into a collective consultation process with its employees to close its production site in Leeds.
According to the company, “the long-term commercial viability of the facility” was deemed not sufficient to keep it open. The site in Leeds will fully cease operations by August 29th, 2025. 59 jobs will be affected by the closure.
VPK operates eight other sites in the UK and Ireland. The current production volume produced by the Leeds site will be moved to other VPK sites, with VPK aiming to minimise any disruption.
Jeremy Anderson, managing director of VPK UK and Ireland, says: “It is with great sadness that we make this announcement today [January 27th]. We have not come to the decision lightly and I would like to express my deepest gratitude for all the hard work and commitment of our employees in Leeds.”
Speaking of the reasoning behind the closure, Anderson emphasises significant financial losses for the company, commenting: “Over recent years, the business has faced significant challenges and, as a result, has been losing money.
“Despite everyone’s best efforts to reverse the situation, we do not see the outlook improving to the level or speed that gives us the confidence that we can prevent further losses. We have therefore made the difficult decision to transfer the current production volume to other VPK sites, ensuring our customer’s experience no disruption in their service.”
As a result of the announcement, VPK’s management team has begun consultation with a local trade union. In his statement, Anderson promises to find financial and practical support for those employees currently working at the site.
Anderson adds: “Naturally we take our responsibilities to each of the 59 affected employees very seriously and will be working with them to find financial and practical support, while at the same time engaging local outplacement organisations, once the consultation period is complete.”
In December of 2024, VPK announced it had entered a joint venture with Scottish packaging firm, McLaren Packaging. The joint venture combines VPK’s Scottish sheet factory in South Lanarkshire with McLaren’s Inverclyde corrugate production facility.
