BoxWay Packaging Group is setting the foundations for the future with some important strategic re-structuring changes, having recently passed its first anniversary.
In September 2021, and again in May 2022, BoxWay announced major machinery investments at its Peterlee and Exeter plants and in its central Finance, IT and Design infrastructure in order to better serve its existing and potential customers.
Customer feedback to all the developments in BoxWay has been positive and good sales growth has been experienced. The ongoing investments are designed to increase the capacity, and to widen the capability, of the BoxWay. An important part of the development of the Group is to ensure it has that the right assets and infrastructure for its continued growth with all customers in existing and targeted markets sectors. It is concluded that the Telford plant does not have the right cost structure, asset base or infrastructure to capitalise on the strengths of BoxWay or on the opportunities presented by the UK corrugated sheet plant market. BoxWay believes that, for the long term, the majority of its loyal and longstanding customers in Telford can be better served by the increased capacity and widened capability in the Peterlee and Exeter sites, which the recent and impending investments bring.
As a result, BoxWay has now commenced a 30 day consultation with 18 employees at the Telford plant, which could lead to a proposed closure of the plant at the end of September 2022. BoxWay will be working closely with all staff affected in supporting them through this difficult process. The plan is also to work with the customers of the Telford plant to transfer the majority of these loyal customers to either the Peterlee or Exeter plants. The loyalty of the Telford customers has been greatly appreciated and BoxWay is determined to settle those customers into one of the existing plants satisfactorily, or to introduce them to one of the strategic partners that BoxWay have been working with to accommodate their valued business.
Andrew Woollard, CEO, BoxWay, commented, “It is with a heavy heart that we announce the proposed closure of the Telford plant. However, we know we have always set our sights on the long-term and we will continue to build on the considerable progress the Group has made in the last twelve months since its incorporation, both in terms of building the right asset base and the appropriate customer and market positioning. The investments at our other plants are setting us up well for the long-term. We are very excited about the prospects for the Group over the months and years to come.”
