European aseptic packaging provider SIG Combibloc (Linnich / Germany; www.sig.biz), will cease production at its site in Newcastle / England at the end of October. The company considers the closure of the UK plant will bring the biggest cost benefits for the group compared with its three other European production sites, in Germany (Linnich and Wittenberg) and Austria (Saalfelden). Since the production volumes at Newcastle can be spread across these three sites, the English facility, with its 125 employees, is virtually obsolete. A few people will remain there in marketing and administration, said the company.

The packaging division employs a total of more than 3,500 people and intends to cut a further 125 jobs at the sites in Germany and Austria. SIG anticipates a considerable switch from cartons to PET bottles as far as juice packs are concerned and expects sales to decline significantly for the current year and for 2007.

The restructuring will create one-off costs of around EUR 25m, of which EUR 9.5m was booked in 2005. From 2007, SIG expects the measures it has taken to save over EUR 20m per year.