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Colorpak pulls packaging plug on Reservoir plant

Wednesday, 10 August 2011
By Print21

Five months since the takeover of Carter Holt Harvey’s (CHH) Victoria-based folding carton assets, Colorpak rationalises the Reservoir plant packaging operations with the loss of around 33 jobs.

If all affected Reservoir plant employees accept termination, in the worst-case scenario the company expects to pay up to $6.7 million in redundancy costs and up to $2 million in leave entitlements.

According to Alex Commins, managing director for Colorpak, after a thorough review of the acquired assets, a rationalisation of the company’s manufacturing footprint had to take place. “In the assessment of the group’s manufacturing assets, the Reservoir plant was found to be the least economically sustainable.

“It is a necessary action we have had to take to get sustainability back into the folding carton operations, as the previous owners left the business in a distressed state,” he said.

The restructure will split the Reservoir packaging operations across existing Melbourne sites, Braeside and Mt Waverley, effective end-November. The facility will remain open with business as usual for the sheeting operations, stores, and associated administration as the site is still on lease.

“Of the 99 employees affected by this decision, we expect to be able to preserve around 66 jobs located at the Braeside and Mt Waverley sites. All employees who are unable to be re- deployed within Colorpak will be paid out their full entitlements and assisted to find new employment elsewhere.

“The decision to relocate the folding carton converting operations at Reservoir to our other sites was a very difficult one, but in the end it was made in the interests of the longer term sustainability of the Colorpak group in Australia and New Zealand,” said Commins (pictured).

According to Colorpak, all employees who are unable to be redeployed will be paid their full redundancy entitlements and be assisted to find alternative work.

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