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Changes Forterra is making to its use of plastic wrapping when packing products. From Stephen Harrison’s trading update in March 2021, you will be aware of Forterra’s commitment to reduce its plastic wrapping by 50% by 2025. This is consistent with all our efforts to reduce plastic waste and improve the health of our environment.
We have worked diligently with our engineering and packaging suppliers to develop a pack format that is almost plastic free yet retains the integrity and security required for safe use. The new machinery has been successfully integrated into the production process with minor disruption. We have tested and successfully trialled a plain banded product with a belly wrap and this will therefore become our packing standard going forward. The new format that we will be adopting is shown in the photograph above.
To move to this position requires investment and installation of new equipment at each of our factories which is already underway. Accrington will be the first factory to move to the new packing format, with the final stages of installation being completed during its upcoming maintenance stop. As of the 6 August 2022 all production will have the new packing format, with the pack size remaining unchanged. We have limited stock at Accrington, so there will be some crossover where deliveries could contain both the new and old format.
We do recognise there may be exceptional circumstances where there will be the necessity for plastic wrapping and we will retain the capability to do this offline. However, recognising the manual nature of this operation fully plastic wrapped packs will be charged at an additional £30 per thousand from August for all products from Accrington. Packing costs from other works will remain unchanged at this point, but as they convert to the new packing format, the manual packing charge will become applicable.
Converting all sites to this format is an extensive exercise which will take until 2025 to complete, but conversions will take place a factory at a time in line with the business plan. The next factory to move across will be Measham in January 2023. New Desford will use this format once commissioned.
Forterra remains committed to improve its environmental position, so in addition to the other extensive investments we have already made we continue to make good progress.