Leading aerosol manufacturer McBride concedes, closing factory 31 March
McBride, a European leader producing household products, will stop production at its Hull aerosol factory at the end of the month.
The British manufacturer has been preparing for this closure since last year, as reported by World Aerosols. Significant losses were being predicted as early as May 2018, following the February mid-year statement announcing an “extensive review” of operations and emphasising a doubling of efforts.
The West Carr Lane aerosol factory will take with it 117 jobs, a significant blow to a city already struggling with an unemployment rate that is double the England average. The restructuring costs took a £15m (€17.5m) toll, though sales did go up over the same period. The Hull Daily Mail reports the following statement from the company, “In recent years, the financial performance of the group’s European Personal Care & Aerosols (“PCA”) business has deteriorated, and the aerosols business in particular has experienced extreme margin pressures.”
Though decommissioning of the plant is predicted to be complete by the end of June, McBride directors are said to be positive, announcing, “The past 12 months has been a demonstration of the company’s resilience and financial strength. The increase in revenues was mainly due to increased customer pricing and volume gains within the household segment. This revenue increase was partially offset by decreases in revenues in the personal care and aerosols segment, as the aerosols business continued to experience an extremely competitive environment in the UK.”
In January of this year, World Aerosols reported McBride CEO Rik De Vos saying, “The Group has made significant strategic progress in the first half of this financial year completing the sale of Personal Care Liquids, integrating Danlind onto the McBride systems and managing our revenue growth.”
According to the statement currently available on the McBride website, “McBride has enjoyed a long history in Hull and the Group does not underestimate the effect of this proposal on our colleagues, their families and the wider community. We will now commence a process of collective consultation with employees’ representatives where the local management team, in close collaboration with HR, will discuss the proposal in greater detail, explore any alternative scenarios, and set out the support which would be available to any potentially affected colleagues.”
