The company has begun a collective consultation process to close its site by 29th August 2025.
The closure is due to the long-term commercial viability of the facility.
Reasons Behind the Closure of VPK UK & Ireland
VPK Packaging Group, a Belgium-based paper and cardboard company that develops and manufactures corrugated cardboard packaging from recycled paper, cited the long-term financial viability of the Leeds facility as the main reason for the closure.
The news comes shortly after VPK UK & Ireland announced its joint venture with McLaren, a Scotland-based paper packaging specialist, to merge its production facilities in Port Glasgow with VPK Packaging Group’s site in East Kilbride.
Managing Director’s Statement on the Closure
Jeremy Anderson, managing director of VPK UK and Ireland, said: "It is with great sadness that we make this announcement today. We have not come to the decision lightly and I would like to express my deepest gratitude for all the hard work and commitment of our employees in Leeds.
Over recent years, the business has faced significant challenges and, as a result, has been losing money. Despite everyone's best efforts to reverse the situation, we do not see the outlook improving to the level or speed that gives us the confidence that we can prevent further losses."
Support for Affected Employees
Jeremy Anderson added: "We have therefore made the difficult decision to transfer the current production volume to other VPK Packaging Group sites, ensuring our customers experience no disruption in their service.
Naturally, we take our responsibilities to each of the 59 affected employees very seriously and will be working with them to find financial and practical support, while at the same time engaging local outplacement organisations, once the consultation period is complete."
