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Thursday, June 25, 2020

Talks being held on closure of Mail Solutions factory this autumn

llanblogger exclusive

* The Mail Solutions factory at Cilmedw.

Company bosses are consulting about their plans to close the Mail Solutions envelope factory in Llangollen.

The factory at Cilmedw was purpose built for Dobson & Crowther but when they went into administration in 2015 it was taken over by Telford-based Mail Solutions UK Ltd.

Mail Solutions group managing director Alan Griffiths told llanblogger that “challenging” conditions in the envelope market made worse by the coronavirus situation had led the company to propose the factory’s closure by the end of September.  

Mr Griffiths said: “We’ve been in consultations about this for a little while now and it’s become common knowledge.

“The envelope market has been in decline for many, many years and it’s a very challenging market.

“Royal Mail volumes are down by 35 per cent and the situation has been exacerbated by the Covid-19 pandemic.

“We are looking at downsizing and consolidating production in one unit at Telford.”

Explaining that they were aiming for the factory to close at the end of September, Mr Griffiths added: “We are going through the consultation process. 

"This is a work in progress and it depends on the consultation how many redundancies there are. We have a total of 35 employees bu there will be an opportunity for a proportion of these to transfer to Telford.

“This is unfortunate but no-one can say that we haven’t given it a go and we have invested in the site.”   

Senedd Member for Clwyd South Ken Skates said: "Closure of the business at this site would be bitterly disappointing, so I would urge the company to work with Denbighshire County Council and the Welsh Government in exploring all alternatives."

And Clwyd South MP Simon Baynes commented: “I am very sorry to hear about the trading problems being experienced by the Llangollen's Mail Solutions factory and I hope that that every effort will be made by the company to help and look after the 35 members of staff who work there during the consultations which are currently being conducted into the possible closure of the factory.”

Dobson & Crowther went into administration in early June of 2015 with 55 of its 79-strong workforce being made redundant.

The following month Mail Solutions stepped in to purchase its assets and re-started envelope production in the September.
Although Mail Solutions was formed in 2000, some of its business roots can traced back to the 20th century and a stationery company called Kenrick & Jefferson Ltd.
From just a small operation the company has continued to grow and become one of the most successful manufacturers of envelopes and print in the UK. 
In November 2017 Mail Solutions completed the transition to an employee-owned company. Purchased by the employee-ownership trust (EOT), all current employees are the beneficial owners of the business.

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