UK’s trade union fights closure of DS Smith’s Clay Cross Packaging plant amid takeover fallout

UK – Trade union Unite has launched a firm opposition to the proposed closure of DS Smith’s Clay Cross packaging facility in Derbyshire, putting nearly 140 jobs at risk.

The move follows the £5.8 billion (US$7.81bn) acquisition of DS Smith by US-based International Paper, which is now undertaking a strategic review of its UK operations.

The proposed shutdown of the Clay Cross site is part of a broader restructuring plan that could see up to five facilities closed across the UK by the end of 2025, threatening around 300 roles.

Unite, which represents engineers at the Derbyshire plant, is demanding that the company reverse its decision, citing broken promises and disregard for local livelihoods.

The Clay Cross facility has long been a major employer in the region and is widely regarded as one of DS Smith’s best-performing sites in terms of operational efficiency and health and safety standards.

Its potential closure has sparked widespread concern not only among staff but also in the surrounding community.

Unite general secretary Sharon Graham condemned the proposed closure, saying, “Workers who were given assurances that their jobs would be safe now face paying the price for a profitable company’s greed.

“It is an utter disgrace that International Paper is playing fast and loose with workers’ livelihoods. Unite is prepared to fight every step of the way to protect our hardworking members’ jobs at Clay Cross.”

The decision to target Clay Cross reportedly stems from infrastructure concerns, particularly a recommendation to replace the site’s roof following a visual inspection conducted in 2021.

However, the on-site team has managed the condition since then and has not requested a replacement, leading to criticism that the closure justification may be exaggerated or misguided.

During the acquisition, International Paper had given assurances that UK operations would remain intact.

Yet, despite recent strong financial results, bolstered by the DS Smith acquisition, the company now appears to be prioritizing cost-cutting measures over earlier commitments.

This move recalls previous union pushbacks in the UK packaging and printing sectors. In 2019, Unite opposed Smurfit Kappa’s restructuring plans that led to closures in Wales, and more recently, GMB challenged job losses at Tetra Pak’s Wrexham facility in 2023.

Unite has signaled it will engage fully in the consultation process and is prepared to mount legal, industrial, and public pressure to safeguard jobs at Clay Cross.

As consultations proceed, the spotlight remains on International Paper’s next steps and whether community and union voices will influence the final outcome.

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