Staff React with Shock to Closure Proposal
Employees have expressed
"shock and disappointment"following the announcement of a proposed closure of a packaging factory that has been a key employer in Launceston, Cornwall, for nearly six decades.
International paper company DS Smith confirmed that a
"proposal had been made"to shut its factory located on Link Road in Launceston. The company stated it was
"entering consultation with around 167 employees"regarding the potential closure.
This decision comes after a
"review of UK packaging operations"conducted amid
"tough trading conditions"affecting the industry.
Cornwall Council member Adrian Parsons, representing the Liberal Democrats, commented on the situation, saying:
"I'm hearing shock and disappointment from staff - they are worried about losing their jobs and about the future."
Enormous Disappointment Expressed by Local MP
Ben Maguire, the Liberal Democrat Member of Parliament for North Cornwall, conveyed his sympathies to the employees, acknowledging that they would be
"really anxious and uncertain"about their prospects.
He criticized what he described as an
"anti-business"stance by the government, stating that companies like DS Smith were being
"hammered"by policy decisions.
Maguire highlighted a broader pattern of job losses across North Cornwall, noting that his inbox had been
"absolutely flooded"with complaints from small and medium-sized businesses regarding increases in national insurance contributions and minimum wage hikes.
He characterized these factors as a
"perfect storm"when combined with the rising cost of living.
Calling on government intervention, Maguire remarked that Cornwall was not receiving an adequate
"slice"of regional growth investment.
The factory originally opened in 1968 under the name Tillotson's and has undergone several ownership changes, most recently acquired by US-based International Paper in January 2025.
Adrian Parsons, who represents Altarnun and Stoke, added:
"I have friends from school who have been there all their lives for a responsible employer which always paid well and had good working hours.
It's a surprise but also an enormous disappointment that things have played out as they have."
DS Smith Statement and Industry Context
DS Smith issued a statement explaining the rationale behind the proposal:
"To improve efficiencies across our business and to ensure we respond to the evolving needs of our customers in what are tough trading conditions for the industry, we have undertaken a review of our UK packaging operations.
As a result of this review, we can confirm a proposal has been made to close a site within our network. A consultation process with employees is ongoing, during which DS Smith (and International Paper) will not comment further."
In 2024, DS Smith made 70 roles redundant at its Louth site in Scotland. Additionally, consultations held last year at sites in Plymouth, Derbyshire, Newcastle, Sheerness, and Wellingborough led to decisions to close those facilities, the company confirmed.
Government Response
A government spokesperson acknowledged the impact of the decision, stating:
"While this is a commercial decision for DS Smith, we understand this will be a concerning time for workers and their families and support is available for those affected.
The decisions we made at the Budget mean we can stabilise the economy and deliver support for families and businesses."
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