Owner of Cumbrian factory due to close makes £12 million profits

By Linzi Watson

Last updated at 15:51, Monday, 15 March 2010

The company in charge of a Brampton factory set to close next month with the loss of 40 jobs has announced pre-tax profits of nearly £12 million.

Bpi.films on the Townfoot estate

BPI Polythene Industries Plc, who run the BPI Films factory at Townfoot Industrial Estate, has tripled profits increasing them from £3.9m in 2008 to £11.8m in 2009, before tax.

BPI films Brampton – which makes shrink wrap and stretch film for pallets – will begin closing down on April 9 after 30 years, axing all 39 jobs. In an annual financial report, the company detailed its reasons for closing the Brampton factory. The company says the plant was outdated and had no viable future but paid tribute to loyal staff.

BPI, which has 15 bases across the UK, previously said that its Brampton operation has been spiralling into the red for five years leaving the company with no choice but to cease production.

The preliminary financial results for the year ended December 31, were published this week. The report says: “In January this year, we announced our intention to close our film extrusion plant at Brampton and transfer the work to other group sites.

“Despite the efforts of a loyal and competent workforce, changes in specification to thinner films, combined with an out-dated factory layout with low roof height, made it more and more difficult to remain competitive.”

It adds: “A drop in demand for a suitable product during 2009 drove us to the conclusion that there was no viable future for that plant. The closure costs of £0.6m will be charged in the 2010 accounts.”

BPI said previously that bosses did not take the decision to close their Brampton factory lightly but local people have said it is a bitter blow for the market town.

Leader of Carlisle City Council and Brampton councillor Mike Mitchelson said that the job losses were “devastating” for the market town adding that he was working to plug the void left.

First published at 14:12, Friday, 12 March 2010
Published by http://www.cumberlandnews.co.uk