McBride prepares to close Hull factory
As the household and personal care product supplier hands over the business to personal care manufacturer, Royal Sanders, its UK aerosols production look set to stop.
The British manufacturer prepares to put a halt to its UK aerosols production, with the closure of its Hull McBride factory, putting 117 jobs are at risk.
UK aerosol production
Plans are underway to halt UK aerosols production at the Hull-based production facility, prompting potential disruption to the European aerosols industry. McBride is a leading co-manufactured and private label personal care producer and supplier.
With the company taking the decision to cease its aerosol manufacturing in the UK, this will result in the closure of its Hull factory and associated operations.
New ownership
Personal care name, Royal Sanders, will now take over operations of the company. McBride made an announcement on 3rd July 2018 notifying it had sold its European personal care liquids business to the Group for a cash consideration of £12.5 million (€13.9 million).
McBride’s aerosol business, in particular, has suffered in recent years, a deterioration put down to “extreme margin pressures”. In May 2018, the company anticipated “substantial” operating losses for the financial year ending 30th June 2018.
In a half-year statement released in February 2018, McBride emphasised that it would be ploughing its resources and efforts into its PCA transformation programme. Following an “extensive review” of its aerosol business, the company made proposals to close its UK operations and subsequently, its Hull factory.
Closure implications
If the proposals go ahead, the factory’s closure is expected to finalise during Spring 2019.
“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,” the company said in a statement released in May 2018.
The next steps for the company, announced in their May statement, are to collaborate with local management teams, HR and employees to engage in a collective consultation period to “discuss the proposal in greater detail, explore any alternative scenarios, and set out the support which would be available to any potentially affected colleagues”.
