Smurfit Westrock Begins Consultation on 55 Job Losses at Lurgan Plant as Unite Warns of Closure Risk
Smurfit Westrock, the global packaging giant formed by the merger of Smurfit Kappa and WestRock in 2024, has begun a formal consultation process on plans to make 55 employees redundant at its corrugated packaging plant at the Annesborough Industrial Estate in Lurgan, County Armagh. The proposed redundancies represent approximately one-third of the site's 165-strong workforce, and Unite the Union has described the plans as unjustified, warning that the transfer of work to a Dublin facility could be a precursor to the full closure of the Lurgan operation.
Background
The Lurgan plant has been a significant employer in the Armagh area for decades, producing corrugated packaging for a range of industrial and retail customers across Ireland and Britain. The site is part of Smurfit Westrock's broader Irish and UK operations, which include facilities in Dublin, Cork, and several locations in Britain. The company, which is headquartered in Dublin and listed on the New York Stock Exchange, is one of the largest packaging manufacturers in the world, with revenues of approximately $34 billion in 2025.
The merger of Smurfit Kappa and WestRock, completed in July 2024, created a company with significant overlap in its European operations, and the integration process has involved a review of manufacturing capacity across the combined portfolio. The Lurgan plant, which specialises in corrugated board and box production, has been identified as part of that review, with management indicating that the restructuring is intended to modernise and strengthen the company's operations over an 18-month investment programme.
The announcement comes at a difficult time for the Lurgan area, which has seen a series of manufacturing job losses in recent years. The closure of Marks and Spencer's distribution centre in Newtownabbey in 2023 and the contraction of several agri-food businesses in the Armagh area have reduced the range of employment options available to workers in the mid-Ulster corridor, and the loss of 55 jobs at Smurfit Westrock would represent a significant blow to the local economy.
Key Developments
Unite the Union has publicly opposed the proposed redundancies, labelling them unjustified and expressing concern that the move could be a precursor to a full site closure. According to Unite, management indicated during initial consultations that the restructuring would involve transferring work from the Lurgan site to a facility in Dublin, a move the union argues undermines the viability of the Northern Ireland operation. "This is not restructuring — this is the beginning of the end for Lurgan," a Unite spokesperson said. "We will fight these job losses every step of the way."
Eddie Fellows, CEO of Smurfit Westrock Ireland and UK, stated that the focus of the restructuring is to ensure a "resilient and sustainable future for the business and our customers." The company said the restructuring process is expected to be completed by the end of 2026 and that it is committed to engaging constructively with the workforce and their representatives throughout the consultation period. Affected employees have been offered access to outplacement support and career counselling services.
The Department for the Economy has been notified of the proposed redundancies and has indicated that it will work with Invest Northern Ireland and the relevant training bodies to support affected workers. The Redundancy Payments Service, which administers statutory redundancy payments in Northern Ireland, has also been alerted.
Why It Matters
The Smurfit Westrock situation illustrates a broader challenge facing Northern Ireland's manufacturing sector: the difficulty of retaining production capacity in a region that faces higher logistics costs, a smaller domestic market, and a more complex regulatory environment than comparable locations in the Republic of Ireland or Britain. The transfer of work from Lurgan to Dublin, if confirmed, would reflect a pattern that has been observed across several sectors, where post-Brexit regulatory divergence and the practical advantages of operating within the EU single market have made Republic of Ireland locations more attractive for certain types of manufacturing activity.
The loss of 55 jobs in Lurgan would have a disproportionate impact on a town that has historically relied on manufacturing employment. Unlike Belfast, which has a more diversified economy with a growing services sector, Lurgan and the wider Craigavon area remain heavily dependent on manufacturing and distribution, and the closure or contraction of individual plants can have significant knock-on effects on local suppliers, retailers, and service providers. The Department for the Economy's response will be closely watched by other manufacturing employers in the region.
Local Impact
The Annesborough Industrial Estate, where the Smurfit Westrock plant is located, is one of the largest industrial sites in County Armagh, and the proposed redundancies will be felt across the local community. Many of the affected workers are long-serving employees with specialist skills in corrugated packaging production, and the transferability of those skills to other sectors is limited. The Southern Health and Social Care Trust area, which covers Lurgan and the surrounding district, already has one of the highest rates of economic inactivity in Northern Ireland, and the loss of well-paid manufacturing jobs will add to the pressure on local social services and community support networks. Armagh City, Banbridge and Craigavon Borough Council has indicated that it will engage with the company and the unions to explore whether any alternative arrangements can be found to preserve employment at the site.
What's Next
The formal consultation period is expected to last a minimum of 45 days, as required by law for redundancies of this scale. Unite the Union has indicated that it will use the consultation period to challenge the business case for the redundancies and to explore whether alternative arrangements — including changes to working practices, investment in new equipment, or the retention of some of the work earmarked for Dublin — could preserve jobs at the Lurgan site. If the redundancies proceed as planned, the company expects the restructuring to be completed by the end of 2026. Invest Northern Ireland has been asked to assess whether any financial support is available to help the company retain employment at the site.
