Derbyshire packaging factory faces closure threat with hundreds of jobs at risk

Earlier this year DS Smith, one of the UK’s leading suppliers of retail packaging to the likes of Tesco and Amazon, finalised a takeover by Memphis-based International Paper, the largest such company in the world, in a reported £5.8billion deal.

On May 23 the new management announced to the London Stock Exchange that it was looking to restructure UK operations with the potential closure of five sites, affecting approximately 300 roles by the end of 2025.

The workforce of around 140 at the Clay Cross base, on Pilsley Road in Danesmoor, have now learned of more concrete proposals to relocate their factory’s workload to other premises around the country.

Paul Clarke, managing director for the UK and Ireland packaging division, said: “In what are tough trading conditions for the industry, we must do the work now to optimise the business for the future.

“We are in consultation with employees and union representatives regarding the Clay Cross site and the proposed closure announced in May. This is a proposal only at this stage and no decisions have been made. The consultation process is ongoing so we cannot comment further.”

While legal requirements mean nothing is final at this stage, the start of the consultation has caused an obvious sense of foreboding on the factory floor.

Almost all the employees are members of the GMB trade union, and Chesterfield branch secretary Paul Marklew said: “This announcement has come without any prior warning and is particularly distressing given the recent accolades the site has received for its outstanding performance in both operational success and health and safety.

“Staff were recently rewarded with a good pay deal and had been assured of long-term career prospects, leading many to make major financial commitments such as mortgages and loans.

“Now, with very little notice, they are being told they are likely to lose their jobs, and the only explanation they’ve been given is that two of the biggest customers prefer to deal with the Scotland factory.”

In March 2024, a few weeks before the initial takeover announcement, DS Smith made a small number of redundancies at Clay Cross as the company halted pre-print manufacturing.

At the time, a spokesperson said: “All of our other manufacturing continues to operate as normal and the vast majority of roles at this site are unaffected by this decision.”

The limited information shared with staff has left an opening for speculation and a belief that the company is seeking to capitalise on demand for land in the area by selling off the factory site.

The Derbyshire Times put the suggestion to DS Smith and its representatives did not respond to that line of questioning.

Paul said: “If true, this would be a devastating blow to a community that has already suffered significant economic hardship following the decline of the mining industry.

“This matter is of critical importance to the people of north Derbyshire and especially to the community of Clay Cross.”

North East Derbyshire MP Louise Jones attended an emergency meeting to discuss the situation on Thursday, June 12.

She said: “Like many of you, I was deeply concerned to hear of proposals to close the DS Smith site in Clay Cross. This site has been operating in Derbyshire for over 50 years and has fantastic links to the local community, as well as employing over 140 people directly and many more indirectly.

“This morning I met with local employees, trade union reps and managers to talk about the sudden decision. There are a number of outstanding questions around the reasons for this move and I hope that DS Smith will provide the necessary information and work with us to ensure that there truly is no alternative.

She added: “DS Smith has been a great local employer in Clay Cross and has had a very positive effect on our community, especially during the pandemic. Speaking to staff, they say over and over again how special it is to work there and be part of what really is a ‘family’ to them.

“I am doing all I can to represent my constituents affected by this and will be working with them whatever comes next. If anyone reading this article has been affected by this closure, I would ask them to contact me on [email protected].”

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