Packaging firm BPI cuts 90 jobs at Worcester plant
Greenock-based packaging company British Polythene Industries (BPI) has announced 90 redundancies at its plant in Worcester.
The company said the move was in response to the loss of a contract to supply bread bags for a major UK bakery.
It expects to incur costs of £1m for restructuring its consumer business.
However, underlying trading results for 2013 are expected to be broadly in line with current market forecasts.
In a trading update, the firm said it did not anticipate the loss of business would have "any noticeable impact on future profit", once it had completed its restructuring move.
BPI's Worcester plant prints and converts food packaging. It is understood more than 300 staff were employed at the factory before the company's announcement.
Its trading statement added: "Trading remains broadly consistent with that disclosed in our interim management statement on 8 November.
"Demand has been slightly better than last year and we currently anticipate that underlying volumes for the year, excluding additional volumes from the acquisition of Flexfilm, will be marginally ahead of 2012."
BPI bought the Flexfilm Group for a cash consideration of £5.5m last year. Flexfilm produces high quality film for the converter sector, mainly for food markets.