Polestar has announced that a period of consultation has commenced with local union representatives and employees regarding the closure of its polybagging facility Newspac with the loss of 78 jobs. The closure is planned for June, following the end of the contract with News International.

The closure of Newspac will not affect production at the adjacent site, Polestar Varnicoat. Phil Boynes, managing director of Polestar Varnicoat, says: "With the completion of the News International contract and the current market conditions, there is sadly insufficient work to maintain the operation of the facility. We will of course work with the employees during this extended consultation period to ensure every opportunity for re-employment is explored."

Polestar Newspac was launched in April 2000 and within the first year, had handled and despatched a billion items, utilising Ferag unwind stations and Sitma polybagging machines.