Nolato Jaycare: Shock as Portsmouth factory to close with the loss of 115 jobs

Nolato Jaycare said it was scrapping its base in Walton Road, Drayton, by December – with the loss of 115 jobs.

The company said an unspecified number of workers would transfer to its other plant in Newcastle.

Bosses at the medical packaging supplier said the move, which is expected to cost about £2.8m, would ‘boast efficiency and earnings capability over time’.

Councillor Simon Bosher, who represents Drayton and Farlington, said the news was worrying and said it was a ‘significant loss’ for the city.

‘This is extremely disappointing for the local economy – it’s going to have a big impact on Drayton and Farlington and the wider Portsmouth community,’ he said.

‘There's never a good time to lose a job but to lose it either just before Christmas or just after is always going to be tough for people.’

Nolato president and chief executive Christer Wahlquist said the move would result in Newcastle employing more staff but exact numbers had not been determined.

In a statement, he added: ‘Our Portsmouth plant has mainly produced standardised pharmaceutical packaging with relatively low added value.

‘We have a modern, well-invested facility in Newcastle focusing on more complex operations that has gradually increased production capacity, including through new cleanrooms.

‘The aim is to transfer much of the customer base to this facility. That will provide us with a more integrated offering across the business area, and we also see a number of synergies that will boost efficiency and earnings capability over time at Nolato Jaycare.’

The firm said it would provide employment support programmes to affected workers.