UK-based DS Smith Recycling is planning to close its materials recycling facility in Southampton which was bought from SCA Packaging in July 2012.

Following its activities review in the wake of the SCA deal, DS Smith Recycling has informed that it has closed two depots in London and consultations were in progress over the future of the depots in Plymouth, Exeter, Stoke-on-Trent and Portsmouth, according to letsrecycle.com.

DS Smith Recycling CEO Peter McGuinness said that he was conscious that the period of consultation would be a source of anxiety for the employees.

"Provision has been put in place to support staff at this difficult time. We are extremely grateful for the staff's dedication and ongoing commitment to delivering a high level of service to our customers," he added.

SCA Recycling developed its pound 15 million, 124,000ft2 materials recycling facility at Totton, Southampton in October 2009.

The recycling plant capable of handling 200,000 tons of material a year has suffered from low volumes of material, even as activity was boosted by the handling of 60,000 tons of unsold newspapers and magazines.