Flint Group, the global packaging and printing supplies firm, today said that 117 jobs at its Dundee site were under threat.
The firm, headquartered in Luxembourg, said the Dundee plant was at risk of closure amid “significant and worsening financial losses” linked to a downturn in the print market.
Flint has two other transfer media sites in the US, where it said energy and raw material costs were significantly lower than in the UK, and the group is considering basing all its manufacturing operations on the other side of the Atlantic.
It will now launch a 45-day consultation process with staff over the proposed closure of its Dundee facility.
David Wood, operations manager at the site, said: “We’re extremely disappointed to have to make this announcement today, especially since our team in Dundee has worked so hard to improve our cost and delivery performance.
“The structural changes in the marketplace are clearly irreversible and demand for our products is falling fast as digital innovations continue to drive people away from print media. When these market trends are combined with a site financial operating loss in 2015 of over £1 million, regretfully it is clear that we must address this excess capacity.”
Tony Lord, vice-president and general manager of Flint Group’s print media Europe division, added: “Communication and consultation with our employees and their representatives will now be a key priority during this difficult time. A further announcement will be made at the end of the consultation period.
“We want to reassure our customers that despite the current consultation period about to start in Dundee, our supply chain will continue to run as normal and there will be no negative impact on existing or new orders. We remain totally committed to delivering first-class products within our standard European lead times.”