‘Subdued demand’ for cosmetics packaging leads to staff cuts at RPC

By Katie Bird

- Last updated on GMT

Related tags Economics

Plastic packaging firm RPC Group is in negotiations to cut staff at one of its French cosmetics packaging plants.

The plant in Marolles-les-Braults, in the Loire, is the most recent site to be affected by the company’s ongoing cost saving plans.

According to the company, job cuts at Marolles are in response to ‘continued subdued demand’ in the cosmetics sector.

The most recent quarterly results (for the three months ending December 31) for RPC show a drop in sales revenue, although sales volumes remained fairly stable in comparison to the third quarter last year.

This, the company said, was a due to lower prices as the drop in price for polymers was passed on to customers during the quarter.

“Trading conditions continue to be affected by the uncertain economic environment with underlying activity levels in the third quarter similar to the first half year,” ​said CEO Ron Marsh.

Restructuring boosts results

The first phase of the company’s restructuring plan, which included the closure of five sites, is nearly complete.

“Of the five sites announced for closure in 2008/9 under RPC 2010, four have now been closed with Raunds (UK) expected to be largely complete by the end of 2009/10,”​ the company said in a statement.

These closures had a positive effect on six month results (ending September 30) that the company announced in November last year.

“As part of the RPC 2010 Programme, we have closed five sites and two distribution businesses. Our cost reductions have been greater than the sales loss,”​ said CEO Ron Marsh at the time.

In addition, RPC noted that the recently vacated Halfweg site in the Netherlands was sold at the end of last year for approximately €3m.

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