Consultation opens after investment and expansion failed to deliver expected demand
The plant in Darlington that manufactures small corrugated trays sold under the Flutepac brand is facing possible closure, with the company beginning a formal redundancy consultation that could affect up to 63 jobs.
Cepac, which bought the Flutepac business (previously EW Cartons) in early 2023, has said it will enter a 30‑day consultation period with employee representatives before any final decision is taken. The announcement comes just over two years after the group invested in the Darlington operation as part of a wider capital programme.
As part of a £20 million, three‑year investment plan across the group, Cepac added microflute corrugating capacity and dedicated equipment for the Flutepac range at the Darlington site. The company has now said the expected market growth for these fibre‑based trays has not come through at the pace it forecast.
"Despite significant investment in new equipment, the accelerated growth planned for the Flutepac portfolio of fibre‑based corrugated trays has not materialised due to much slower market development than we had anticipated."
The firm said it would make every effort to support affected staff, including looking for alternative roles at other Cepac sites or in the local area. The Darlington operation was previously the subject of a consultation in 2023, when the company described the site as loss‑making amid industrial action and proposed up to 61 potential redundancies at that time.
- Location: Darlington plant producing Flutepac trays
- Jobs at risk: Up to 63 roles
- Consultation period: 30 days with employee representatives
- Previous consultation: 2023, up to 61 potential redundancies
The proposed move will be watched closely by workers and the local community. Manufacturing jobs remain a significant part of employment in Darlington and the surrounding North East, so any closure or large‑scale redundancies have wide local consequences. Cepac said the consultation would determine the final outcome and added that it intended to explore internal redeployment where possible.
| Year | Event |
|---|---|
| 2023 | Cepac acquired Flutepac (formerly EW Cartons); earlier consultation over up to 61 redundancies |
| 2024–2026 | Group investment programme including microflute capacity and dedicated equipment at Darlington |
| 2026 (current) | 30‑day redundancy consultation announced; up to 63 jobs potentially at risk |
Local leaders, trade unions and staff representatives typically press companies for transparent engagement during such consultations, seeking to limit job losses or secure meaningful support packages including redeployment, retraining and redundancy terms. The company statement did not provide a timetable for any final decision beyond the consultation period.
For many in Darlington the story will revive memories of previous workplace uncertainty at the site. The last public consultation in 2023 coincided with a period of industrial action and the firm acknowledging that the operation was loss‑making. This latest announcement suggests those financial pressures have persisted despite the capital spending to expand capability for the Flutepac range.
The outcome of the consultation will determine whether the site remains operational in its current form, is scaled back, or closed. In the meantime Cepac has said it will try to support employees affected by any future changes, and will discuss potential moves to other sites within the group or roles elsewhere in the local labour market.
