Kodak to close Yorkshire manufacturing site

KODAK is to close its Yorkshire production site.

The global technology company says this is part of its “strategic, global manufacturing plan”.

It said it plans to “phase out” production at its Leeds plant, which makes printing plates for the commercial printing industry and employs 224 people, beginning the process this summer and completing it mid-to-late 2015.

Robert Price, general manager of Worldwide Plate Operations at Kodak, said: “Our employees in Leeds have a long history of capably serving our customers with the quality products they have come to expect from Kodak.

“However, with the investments we made last year in the new high-speed manufacturing line, the capacity of our Osterode plant can now meet future demand growth from Europe, the Middle East and Africa.”

Price said that employees at the Morley-based plant will be offered separation benefits and transition services. Of the 224 staff, 200 are manufacturing-related, and 24 are in worldwide or regional positions.

As a result of the action, Kodak expects to incur total charges of $30-40m, $20-25m of which would be non-cash related to accelerated depreciation and asset write-offs.

Kodak said it is making manufacturing investments to increase capacity to meet rapidly growing demand for its process-free printing plates, while also making worldwide plate production more efficient, and enabling better customer service across its digital plate portfolio.

Kodak’s Sonora Process Free Plates are manufactured in Europe. Kodak plans to increase capacity, as well as begin manufacturing Sonora Plates at sites in Asia and the Americas. In Europe, Kodak has invested in its Osterode, Germany, plant where an upgraded, high-speed Sonora Plate manufacturing line increases capacity for sales growth. In Asia, Kodak has completed an upgrade of its Xiamen, China, plant to produce Sonora Plates.