Paper and packaging recycler and manufacturer DS Smith is to close the materials recycling facility it bought in July last year as part of its takeover of SCA Recycling.
In a statement, the company said that it intends to close the MRF on 21 February as it was not making enough money from the 120,000 tonnes of material it recycles per year below its 200,000 tonne per year capacity.
As a result, 33 employees and 30 subcontractors have entered into a period of consultation.
DS Smith said it had made attempts to find a buyer for the facility, but it had not been possible to find one.
The company also plans to close facilities in Stoke-on-Trent and Portsmouth as well as merge its Exeter and Plymouth sites.
In its statement, DS Smith noted that paper recycling can be a profitable business, but the high rent at its Southampton site meant that it was not possible to make a profit there.
Over the longer term, it plans to develop a source separated recycling facility within the same geographical area.
DS Smith Recycling chief executive Peter McGuiness said: “We are conscious that this period of consultation provides for an unsettling period for employees, especially at the Southampton facility, and provision has been put in place to support staff at this difficult time.
“We are extremely grateful for the staff’s dedication and ongoing commitment to delivering a high level of service.”
