Whilst R&D, warehousing and electrical operations are to remain in the UK, production will move to Latvia
Plockmatic Group announce plans to move most of its UK assembly operation from Milton Keynes to its purpose-built manufacturing, assembly and logistics plant in Latvia. The realignment is part of the group’s wider strategy to focus further on customers’ requirements for cost effective and highly productive modular finishing systems delivered with shortened lead times, for both off-line and in-line solutions.
Ed Hudson, Morgana Systems UK General Manager, said, “Our UK client base – in common with other manufacturers – is currently facing increasing challenges with higher employment costs, supply chain uncertainty and in some cases the fallout from US tariffs. Today’s announcement will unfortunately impact jobs within local assembly and supply chain in Milton Keynes. We are now in a consultation process and are liaising closely with all those affected. During this time all alternatives to redundancy will be considered.”
The warehousing, R&D, service and sales/marketing operations of subsidiary company Morgana Systems will remain in Milton Keynes, Buckinghamshire. The business which consolidated Watkiss Automation in 2018 and Intec in 2022 will focus on new growth plans to include increased strategic partner collaboration and innovative customer focused sales and service programmes.
Manufacturing output will be expanded at the recently built production facility in Riga where Plockmatic Group plans to further upscale its machine-building and logistics capabilities with new developments. Additional plans for Plockmatic Group include developing new in-line and off-line finishing technology to support the expansion in production cut-sheet toner and inkjet devices, as well as to specifically continue UK development with its fast-paced expansion of products in the growing packaging and labelling sectors.
Jan Marstorp, Plockmatic Group’s CEO, said, “The decision has been taken after careful consideration of market trends and how we can further improve our go-to market growth strategy. In order to continue our growth, we must place the right resources in the most appropriate geographical locations in order to take advantage of the economies of scale and expertise.
“For our customers, we always aim to provide the best technical and most cost-effective solution in every case, helping our growing customer base find the right solution for their business, whether in-line or off-line. With new products coming on board – such as new booklet making systems including the BLM7000, energy efficient LED UV coaters as well as a range of new folder creasers with integrated slitting technology, feeders and stackers designed also for the long sheet market – we need to take advantage of our leaner manufacturing facility in Riga. This will enable us to maximise our value proposition for our clients. In addition, we are conscious of the need to continue to further expand our finishing range including increased automation. It is our firm belief that this is the right time for the move.”
Earlier this year it was announced that the UK operation would become branded as Plockmatic Group UK, in-turn consolidating the individual Morgana and Intec brands.