Faerch Plast has acquired a 14,000 m2 commercial plot in the town of Durham, from which it will manufacture plastic food trays from this summer.
“In the future, a portion of our sales in the UK market will be produced at the Durham plant,” said Managing Director Lars Gade Hansen. “It’s basically trays for stored food and new meat. “
In a company statement, the bottler said the move would improve its operational power and minimize environmental impact.
“This significant investment is part of Faerch Plast’s long-term strategy to be close to its customers, which means, among other things, that we can reach a peak of security of supply,” said Gade Hansen.
Faerch Plast controls a giant component of the UK market for crystalline polyethylene terephthalate (CPET), a recyclable and opaque PET resin whose design makes it robust in a wide range of temperatures. It also provides a barrier against oxygen, water, carbon dioxide, and nitrogen.
The plant will first manufacture CPET trays for sale in the United Kingdom, followed by polypropylene meat trays and Mapet II containers.
Economic security
“This resolution guarantees economic security,” Gade Hansen said. “Over the past four years we have noticed a sharp drop in the exchange rate of the pound sterling against the Danish krone. The insecurities this has created for us, as well as our customers, will be reduced by producing much of the plastic packaging in the United Kingdom.
“We now have 30,000 m2 of commercial space in Durham,” said Gade Hansen. “This will allow for further expansion as demand increases.
“In the long term, we hope to open a distribution center across the street to service the plant. “
Center of distribution
In the past, the site was owned by Veriplast, a manufacturer of food and beverage packaging. The previous owner will end production in the United Kingdom and move its production to the Netherlands.
The local press presented this news as a good incentive for the region. It recently suffered the closure of Kerry Foods with the loss of 400 jobs. For more information about Kerry, click here.
But George Cain of the Shop, Distribution and Allied Workers Union said the new jobs will not make up for those lost at Kerry Foods.
Cain told FoodManufacture. co. uk, “Most jobs are reserved for qualified people. And the company from which they bought the facilities has already put them in contact with some of their former employees. “