By Graeme Strachan

DUNDEE LOOKS likely to suffer another jobs blow as a result of NCR’s decision to axe 650 jobs.

UK packaging company DS Smith announced proposals to close its Dundee operation with the loss of 16 jobs as a consequence of the cash machine maker’s decision to end manufacturing at Wester Gourdie.

It comes as cleaning company Scotia Clean Teck, which employs 33 people to clean NCR’s Dundee premises, is bracing itself for a marked reduction in its workload.

Workers at the DS Smith Myrekirk Road premises were given the news “out of the blue” yesterday morning.

They were sent home and told to report back on Monday.

The company, one the UK’s foremost corrugated packaging companies, later issued a statement.

“DS Smith Packaging regrets that it has been necessary to propose the closure of its manufacturing operation at Dundee, which employs 16 people.

“Whilst the Dundee business has been a sound performer over previous years, the impending loss of work from NCR, its major customer, means that the business will no longer be financially viable.

“Despite the hard work, skills and commitment of the workforce, it has not been possible to find a way to replace the sales which will be lost as a result of NCR relocating its manufacturing to Hungary and India.

“DS Smith Packaging intends to continue to service the remaining customers of the Dundee factory from Dumbarton, one of its other manufacturing sites in Scotland.

“The detailed arrangements in relation to the proposed closure are subject to ongoing consultation with employees and their representatives.

“If, following the consultation, the closure is confirmed, DS Smith Packaging will make every effort to assist employees in finding alternative positions at its other locations within Scotland or with other employers in the area.”

The Dundee sheet plant specialises in timber products and heavy-duty large format die-cut corrugated packaging. Speculation has been growing that as many as 400 jobs, which are all dependent on production at NCR, might be lost as a result of the NCR decision.

Scotia Clean Teck said there had been no change to its contract with NCR as yet but the firm was prepared to “downsize” if necessary.

Office manager Moira Nimmo said it was just a matter of time before the Edinburgh company was notified that NCR no longer needed its services on the same scale—news that would be “devastating” to the small company and its workers. About a third of the workforce depends on the NCR contract.

Suppliers in Fife and Tayside are already assessing the damage from the knock-on effect. Firms that feed into the production process at NCR are expected to feel the squeeze, with job losses potentially matching the 650 that will go at the Dundee factory.