DS Smith Plans to Shut Launceston Packaging Plant, Threatening 167 Jobs

*TL;DR: DS Smith has proposed closing its Launceston packaging plant, initiating a consultation that could affect 167 employees.

Context

The Launceston site has been a cornerstone of Cornwall’s industrial landscape for nearly six decades. International paper firm DS Smith, which acquired the operation in early 2025, says the move follows a review of its UK packaging operations amid “tough trading conditions.” The proposal triggers a formal consultation with the workforce, a step required under UK employment law before any closure can proceed.

Key Facts

- DS Smith announced a proposal to shut the Launceston factory on Link Road and is consulting with roughly 167 staff members. - Employees described the news as “shock and disappointment,” noting the plant’s long history as a reliable employer with good wages and hours. - Cornwall Council Liberal Democrat Adrian Parsons echoed staff sentiment, calling the development “an enormous disappointment.” - North Cornwall MP Ben Maguire expressed sympathy for workers and warned that the closure reflects a broader trend of job losses across the region, exacerbated by rising national insurance costs, minimum‑wage hikes and a “perfect storm” of economic pressures. - DS Smith previously cut 70 jobs at its Louth, Scotland site in 2024 and has closed other UK locations after consultations in Plymouth, Derbyshire, Newcastle, Sheerness and Wellingborough. - The company cited the need to improve efficiencies and respond to evolving customer needs as the rationale for the review.

What It Means

The proposed shutdown threatens to remove 167 jobs from a community where the plant has long been a stable source of employment. Local officials fear the loss will deepen economic strain in a region already grappling with rising living costs and limited growth investment. The consultation period will determine whether DS Smith proceeds with the closure or explores alternatives such as redeployment or a scaled‑down operation.

The government has offered support for affected workers, emphasizing that the decision remains commercial. However, critics argue that policy measures—particularly those affecting labor costs—have created a “perfect storm” for manufacturers like DS Smith.

Looking ahead, the outcome of the consultation will signal whether DS Smith will follow through with the closure or seek a different path, and it will test the resilience of Cornwall’s manufacturing sector amid broader industry challenges.