The Alcan plant in Midsomer Norton produces flexible food packaging for the UK snack market. The plant has been adversely affected by a declining demand in the UK market and high raw material costs, Alcan said in a statement.
The company plans to close the site by the end of 2006. All 218 employees "would be affected" by the closure, Alcan stated. The company is negotiating with the affected unions and employee representatives. Midsomer Norton is near the city of Bath.
Alcan said it would continue supplying the Packaging would continue to supply packaging to the UK snack market from its remaining plants in Europe.
The snack packaging site is one of two plants Alcan is closing in the UK. The company is also closing its hard-alloy extrusion plant in Workington, UK. The plant supplies the aerospace and transportation sectors.
"After thoroughly exploring and examining various alternatives, this proposed reorganisation represents the most viable solution to ensure the long-term competitiveness of Alcan's European assets," the company stated in a press release.
Alcan expects to incur a pre-tax, non-recurring charge of about US$40m (€31.6m) in the second quarter of 2006 related to the proposed closures.