Crown Food Europe has launched a consultation process with staff at its Worcester, UK site due to declining food packaging sales.
The 90-day process, which began recently, will consider the future of the 116 people employed at the site in Perrywood.
The site, which is one of four the firm run in the UK, produces two piece and three piece cans and ends for the food market.
Supply exceeds demand
Crown said that supply across the four sites now exceeded demand and restructuring needed to be looked at but added that no decision on the site’s future has been taken.
“I can confirm that we have announced the start of a consultation process at our Perrywood site in Worcester,” a Crown spokesperson said in a statement sent to FoodProductionDaily.com.
“We are now in talks with Trade Union representatives about options for the future of the site, as part of a wider review of our UK and Ireland manufacturing and business support facilities.”
The site was formally owned by Metal Box which Crown Holdings, or Crown Cork and Seal as it was then known, acquired in 1996.
“Changes within the food packaging sector have caused a consistent decline in sales and our manufacturing capacity across our four UK and Ireland Food sites now unfortunately exceeds demand.
“To protect the future of the wider business and its employees, we therefore need to consider proposals for restructuring.
“No decisions have yet been made. Further information will be provided when the consultation process is complete."
Crown also operates aluminium and metal UK food packaging sites in Braunstone, Neath and Wisbech, which form part of the Crown Holdings portfolio which includes 134 manufacturing facilities in 41 countries with 2011 net sales of $8.6bn.