Jobs impacted as Plockmatic moves production to Latvia

Plockmatic Group has announced plans to move the majority of its UK assembly operation to a purpose-built manufacturing, assembly, and logistics plant in Latvia.

Morgana, a UK-based subsidiary of Plockmatic, has said that the announcement will impact jobs within its assembly and supply chain in Milton Keynes, Buckinghamshire. According to the company, all alternatives to redundancy will be considered.  

The manufacturer of finishing systems has operated at the Milton Keynes site since the purchase of Morgana Systems in 2013.

The warehousing, research and development, service and sales, and marketing operations of subsidiary company Morgana Systems will remain in Milton Keynes.

Plockmatic’s UK manufacturing output will now move to the recently built production facility in Riga, where it plans to upscale its machine-building and logistics capabilities with new developments.

The move away from the UK has been described by Plockmatic as “part of the group’s wider strategy to focus further on customers’ requirements for cost effective and highly productive modular finishing systems delivered with shortened lead times.”

Once operating at the new facility, Plockmatic plans to develop new in-line and off-line finishing technology to support the expansion of its line of cut-sheet toner and inkjet devices.

UK development plans will aim to focus on products in the growing packaging and labelling sectors.

Plockmatic, which also purchased Watkiss Automation in 2018 and Intec in 2022, will focus on new growth plans including increased strategic partner collaboration.

Jan Marstorp, chief executive officer of Plockmatic Group, says: “The decision has been taken after careful consideration of market trends and how we can further improve our go-to market growth strategy.

“In order to continue our growth, we must place the right resources in the most appropriate geographical locations in order to take advantage of the economies of scale and expertise.”

Marstorp adds: “For our customers, we always aim to provide the best technical and most cost-effective solution in every case, helping our growing customer base find the right solution for their business, whether in-line or off-line.

“With new products coming on board – such as new booklet making systems including the BLM7000, energy efficient LED UV coaters, as well as a range of new folder creasers with integrated slitting technology, feeders, and stackers designed also for the long sheet market – we need to take advantage of our leaner manufacturing facility in Riga.”

Describing the move in more detail, Marstorp says: “This will enable us to maximise our value proposition for our clients. In addition, we are conscious of the need to continue to further expand our finishing range including increased automation. It is our firm belief that this is the right time for the move.”

Ed Hudson, Morgana Systems UK general manager, says: “Our UK client base – in common with other manufacturers – is currently facing increasing challenges with higher employment costs, supply chain uncertainty, and in some cases the fallout from US tariffs.

“Today’s announcement will unfortunately impact jobs within local assembly and supply chain in Milton Keynes. We are now in a consultation process and are liaising closely with all those affected. During this time all alternatives to redundancy will be considered.”

Earlier this year the company announced that all its UK operations would become branded as Plockmatic Group UK, in-turn consolidating the individual Morgana and Intec brands in a similar way as was done with Watkiss Automation and KGS.