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DS Smith warns for further crisis.

 

DS Smith brexit
Britain’s largest packaging company warned that a planned bonfire of EU laws risked plunging the UK into a deeper economic crisis as it announced plans to close its factory in southern England and continue expanding production in Europe. Miles Roberts, chief executive of DS Smith, said the group’s international business could not continue to subsidise operations in its home country, adding it would be «extremely helpful» for manufacturers if the government aligned regulations «wherever possible» with EU rules to ease trade. DS Smith recently opened factories in Poland and Italy, and is expanding in Germany. The decision to wind down DS Smith’s factory in Aylesford, Kent, which produces cardboard displays for retailers, was «very regrettable», he said, but the company had to «respond to the demand that’s there».

«There are now quite severe restrictions on the movement of products between the UK and its biggest market,» he said, adding that the company’s exports to the bloc had roughly halved since Brexit. Unite union officer Louisa Bull said workers at the Aylesford factory were «gutted» by the decision. Separately, the GMB union «reluctantly accepted» an improved pay increase of 8 per cent from DS Smith after last month 93 per cent of the 1,000 workers it represents voted to strike over pay. It still has one paper mill and 27 packaging facilities across the country excluding the Aylesford factory.

GMB officer Eamon O’Hearn said the Aylesford site closure had contributed to concerns about the future of UK manufacturing and factory workers, adding «no one can escape the impact that Brexit had on supply chains». His comments came as DS Smith reported an 80 per cent surge in profits to £315mn in the six months to October, as revenue rose 28 per cent to £4.3bn.

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Comments

  1. Samuel9 December 2022 at 16:29

    Easing trade should be the priority for the UK Government. Anything else and the UK will feel the economic sting soon afterwards. This shouldn't be about some people's egos as it seems it is right now. It must be about making a better life for UK citizens.

    ReplyDelete
  2. Adam9 December 2022 at 17:23

    Brexit was a bad decision. I very much hope that they won't extend the series of bad decisions they made and are making by going ahead with this waste of time and money for changing EU laws to UK laws.

    ReplyDelete

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