Sell-outs: Kimberly-Clark took £12m grant - and now axes 500 at Barton-upon-Humber factory
AN INTERNATIONAL firm has been criticised for axing hundreds of jobs despite receiving a multi-million pound Government grant to open its factory on the Humber.
About 500 workers, many of them from Hull and the East Riding, face losing their jobs after American hygiene giant Kimberly-Clark announced proposals to close its factory in Barton.
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Ditched: The Kimberly-Clark factory in Barton.
The factory was set up 20 years ago with a public subsidy of £12m – a grant that would be worth £20m in today's prices.
It's the third major blow to East Yorkshire in days. Seven Seas has announced plans to close its Hull site, and almost half of the workforce based at McCain are in danger of losing their jobs.
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Hull East MP Karl Turner said: "Companies are too quick to take local government money and then desert us when times get tough.
"This is more money out of the local economy and more pain for families."
Kimberly-Clark's announcement brings the total number of potential job losses across the region to almost 800 in less than two weeks.
Mr Turner said: "It is really disappointing that companies do not think as much of the region as they do their profits.
"Families do not deserve to be ditched as soon as the going gets tough."
Terry Geraghty was leader of Humberside County Council when negotiations were under way with Kimberly-Clark to persuade the firm to locate on the Humber.
Cllr Geraghty, now portfolio holder for culture, sport and leisure at Hull City Council, said: "I am surprised and disappointed.
"Humberside County Council put a tremendous amount of work into the investment.
"I had to fight hard to get the company to look at Humberside but they liked what they saw and it was a huge success of that era. "
The firm has now made the decision to drop the Huggies nappy range in Britain and the plant is likely to be closed by March.
One Hull man working at Kimberly-Clark said: "I have given the past 20 years of my life to the company.
"The majority of employees have been there for a long time, too – it has always been their job.
"This has come as a complete shock and I think about 50 per cent of the staff live in Hull or East Yorkshire, so it will really affect the region."
Shocked staff were given the unexpected announcement just hours ahead of a financial update delivered to the New York Stock Exchange, on which Kimberly-Clark is listed.
Employees were expected back at Kimberly-Clark today. There are 378 people directly employed, with a further 120 involved in contracted logistics operations exclusive to the Barton factory.
Plant manager Graham Tongue, who is also affected by the strategic decision, said: "As a plant, we are not a profit centre. As far as the competitive nature of the nappies market has been, we have never been able to get a sustainable business model in Europe.
"It is very shocking, unsettling news for the staff and our focus is about supporting them and their families now and in the coming months as well."
A backdrop of declining sales and an unfavourable currency exchange rate emerged from yesterday's results.
The official line from the company said it was "making strategic changes in Europe to focus its resources and investments on the company's strongest products and markets in order to deliver better returns in the future".
Hull North MP Diana Johnson said: "After hearing dire news from McCain Foods and Seven Seas last week, and so many other public and private sector jobs currently threatened in Hull, this news from Kimberly-Clark is another heavy blow to our region."
Another 60 jobs from Kimberly-Clark are to go in North Wales, with three other plants in continental Europe also affected.
Dave Faddis, vice president of supply chain at Kimberly-Clark Consumer Europe, said: "No decision such as this is ever taken lightly and it is with regret that we have to propose the closure of Barton as part of changes to our European business.
"These are tough choices but they are necessary to improve our competitive position and make Kimberly-Clark's consumer business stronger in Europe."
Mr Faddis said it is a very tough marketplace, squeezed by competition from other brands and supermarkets' own-label nappies.
He said: "The reason this decision has been made is because of our performance in the marketplace not meeting our expectations.
"We have been losing market share and we have not been achieving any profitability."
Cllr Geraghty said he feels sorry for the workforce, who thought they had jobs for life.
He said: "My thoughts go out to them – they put a lot of hard work into it."
The councillor said he is now hoping to hear positive news from Siemens to give the region a much-needed boost.
The German energy giant is on the verge of agreeing a deal to bring 800 jobs to the city through its creation of a wind turbine manufacturing plant at Alexandra Dock.
Thousands of jobs could be created in the supply chain if the Siemens development goes ahead.
Cllr Geraghty said: "Let's just hope we have good news about Siemens.
"We need to get this announcement to give us a boost and lift this gloom."
Video: Dave Faddis, vice-president for supply chain at Kimberly-Clark Consumer Europe, on the Barton proposals




Comments
by ade63
Friday, October 26 2012, 7:23AM
“My husband has worked for this company since it opened and hearing the news that he is to be made redundant in March has had a devastating blow to him and his colleagues. He is a proud man and is trying to be as positive about the future as he can. Obviously he is worried that he wont get employment in the future having never being out of work. But after reading some of the comments on here I cant believe some of you can be so insensitive. Come on they have been told they are loosing their jobs. None of the workers have gone to the papers and stood outside the premises wanting public sympathy. They all know nothing can be done and are facing up to the fact. But it seems other than the employers at Kimberly-Clark are making more of an issue about the closure. Let them be the ones to worry. As the the country being officially out of recession I think not, this is just the beginning.”
by garrya
Friday, October 26 2012, 6:30AM
“jimrhod.. take a look you at yourself, at not a game, this peoples lifes... one word starts with t and ends in t....”
by Demonica666
Thursday, October 25 2012, 10:35PM
“On a day when we are told that the 'recession is over' by the London massive, we now learn that yet another large business in this area is to close, which will have massive implications for our local economy. Perhaps Cameron, Osborne, Alexander et al, would like to travel North of Birmingham and rejoice with us? I will put the bunting out and we will have a right royal knees-up. Hurrah!”
by SPBlakeney
Thursday, October 25 2012, 8:17PM
“Its an unfortunate fact that private industries are not actually part of the Welfare system and so its a bit bizarre for Turner to have a go and to imply the sole function of business,whether theyre losing money/failing or not,is to keep people in work. Thats harking back to the nationalised dinosaurs of the 70s that haemmorhaged money simply to keep employment up.
As for the grant,and that goes for the cash put towards the Siemens scheme,firms need incentives,once given them they can start trading in areas theyd never have moved into,providing jobs/taxes for the time they are able to trade.
Unlike Blair/Brown UK Ltd-who borrowed Britain into oblivion to fund their welfare bonanza to sweeten the voter base-when private firms go in the red,they have to cease trading.
As usual Turner/Johnson in their typically tasteless partisan fashion,seek political capital and votes from the tragedy of joblosses. Speaking of whom, Labour still is still dodging the bullet of telling us of their secret alternative to austerity/balancing the nations books-wheres your extra billions to come from,Turner/Johnson?”
by strummer1961
Thursday, October 25 2012, 7:52PM
“t8yman.Great idea in theory but ultimately you end up the loser.I'm afraid it's got to the stage where the corner shop cannot compete with the big boys anymore.
In the current economic climate every penny's a prisoner,paying over the odds won't help our weekly budgets will it?”
by albaz
Thursday, October 25 2012, 7:50PM
“"some were upset"”
by albaz
Thursday, October 25 2012, 7:48PM
“It is ridiculous to state that "I gave 20yrs of my life to the firm or to say the "the workforce thought they had jobs for life",however I know how it feels when a firm decides to close up and go for the cheaper option to keep shareholders happy. The last firm I worked for was taken over and made most of us redundant last august after effectively conning us in to working overtime for NOTHING. Not for flat rate but NO rate at all to avoid job losses,which came after all and upset many long term colleagues of mine. I was not bothered even after 20yrs but some where upset partly for obvious reasons,partly because the firm was keeping their customer base,but with a different and surely cheaper workforce.”
by t8yman
Thursday, October 25 2012, 7:14PM
“a lot of righteousness going on in here. how many people here buy big brand items from corporations and huge retailers? most of us I assume.
I am personally going to put as many pounds into the pockets of small local businesses as I can from now on. this city is being deserted by the corporations. we can make a difference. voting might not make much difference to the way this country is being misrun - but our wallets have a lot of power.”
by NeilTheasby
Thursday, October 25 2012, 4:46PM
“Bouncy-Bouncy - In making my remark about this local tragedy, I did not suggest that it was the fault of the ruling ConDem shower though they have been directly responsible for many other employment tragedies. More careful reading is advisable in future my right wing friend.
Yours fraternally,
Neil”
by Bouncy_Bouncy
Thursday, October 25 2012, 3:38PM
“NeilTheasby - How is this the Governments fault? Kimberly-Clark are a global/MNC. They are pulling the products made at this site from the UK market. Now unless the government have banned babies from s******g in anything other than Pampers, i'm not sure how the names in question are responsible?
There is a wider world beyond Hull, funnily enough. The country as a whole has a shrinking number of unemployed, green shoots of an economy returning to growth, yet the staunch Lie-bourites stil insist that the facts are all massaged, lies, spin yadda yadda (but any negative stats are always bang on the money, aren't they)
McCain are steamlining their workforce in an efficiency drive - Something all businesses do. Seven Seas management were incompetant fools who got complacent and let the competition swallow them up in a strong market. Kimberly-Clark are concentrating on more lucrative global markets. None of this is attributable to austerity or the coalition as a whole.
Anyway, lets vote the champagne socialists back in and watch the economy unravel again! Enjoy it, won't you!”