Scapa shuts US plant but Euro recovery continues
TECHNICAL tapes manufacturer Scapa Group said today that it has shut one of its loss-making plants in the US, with the loss of 35 jobs.
The Tameside headquartered company has seen its revenues in Europe recover ‘well’ although it says that North America has remained a ‘tougher market’.
In a year-end statement, Scapa said like-for-like sales have averaged 9% above the comparable period in 2009.
The statement said: “At the end of the period the decision was taken to close our small, loss-making plant in Carlstadt, New Jersey.
“This will result in cash closure costs of under £0.4m which will be more than offset by a release of working capital, asset impairments of approximately £1.3m and the loss of 35 jobs.
“It is intended to transfer a proportion of the production to other Scapa sites in North America and Europe.”
The company’s operating profits for the year are expected to be within the range of market expectations, while its net cash balances are ahead of brokers` forecasts at approximately £4.8m.
In the 12 months to March 31, 2009, the company’s pre-tax losses came in at £9.3m compared to a profit of £7.4m last time while its turnover rose from £170.1m to £174m which reflected favourable currency movements.
