Cumbrian papermaker James Cropper has revealed a proposal to streamline its business and ‘accelerate plans for sustainable growth’.
Around 10 per cent of its staff at the Burneside mill, near Kendal, will potentially be affected by the plans and the firm has started a 90-day consultation period with workers.
It is understood around 600 people work at the plant.
A statement said: “In order to create a more resilient and higher margin business that is less exposed to the multiple headwinds it has faced for many years, the group is proposing to reduce the number of paper machines in operation from four to three, with two machines anticipated to be in production at any one time.”
The company also plans a multi-million-pound investment over the next three years to simplify processes.
Overall, it plans to reorganise the company from its current three divisions – James Cropper Paper, Technical Fibre Products and Colourform – into four:
- James Cropper Creative Papers
- James Cropper Luxury Packaging
- James Cropper Technical Fibres
- James Cropper Future Energy – incorporating TFP Hydrogen, and including materials and products for fuel cells, carbon capture, batteries and wind.
They will be led by two managing directors covering paper products and advanced materials.
Patrick Willink has been appointed to the new position of chief innovation officer, who will lead a Centre for Innovation at James Cropper.
Steve Adams, who was appointed as chief executive officer in August, said: “We’re a purpose-driven business built on strong values and announcing potential job loses is not a decision taken lightly. We will work collaboratively with our employees, unions, and representatives throughout this process. Change is difficult yet it is essential to ensure the sustainability and growth of James Cropper.
“Our strategic realignment will drive margin improvements by bringing greater focus on our customers and allow us to take better advantage of our size and remain agile and dynamic in our markets. Combined with our wealth of manufacturing knowledge, sustainability alternatives and pioneering abilities we will strengthen our position across multiple sectors as the preferred global partner of choice.”
Mark Cropper, chairman, added: “The next few years should see breakout growth in many areas as we truly live our purpose and help the world shift to a low carbon economy in better balance with nature.
“Nevertheless, we have become increasingly aware that this will not be achieved without more robust and efficient systems, greater collaboration across our different businesses, and a resizing of our paper business to make it more consistently profitable and sustainable.”
