Sales slump 25% at Scapa

TECHNICAL tapes manufacturer Scapa Group saw sales slump by 25% in the three months since January.

The group said its sales to the struggling automotive sector had dropped by 50% during the period.

The business has already imposed a wage freeze and announced 140 job cuts. Its decision to close a plant in France which employs 68 people led to militant action on Tuesday by protesters who held three senior staff against their will for 24 hours.

In a trading statement issued today the company said it was continuing with discussions on the proposed closure of the site which has been hit by the declining fortunes of the automotive industry.

Scapa said it had released cash from working capital to offset the impact of operating losses in recent months. “We have adequate cash and committed facilities to finance the business through a prolonged period of weak demand,” said the statement.

Chief executive, Calvin O’Connor, said: “We have already taken action to address our existing cost base. Other initiatives are in progress that are designed to position the group to withstand the impact of a continuation of the current depressed level of demand for the year to come.”

Scapa will unveil full-year figures on May 28.