Hurricane Irene damages API facility
STOCKPORT-based foils and laminates group API has said trading in its six months to September 30 is likely to be in line with expectations, although it will face a one-off charge relating to flood damage at one of its US plants.
The company said that a foil manufacturing facility at Rahway in New Jersey was damaged during the recent Hurricane Irene. It said that although the plant was back up and running within 48 hours, losses associated with damage to property, inventory and stock could cost it up to £700,000 in costs not covered by insurance.
Despite this, the company said that all of its businesses have either “maintained or improved” their year-on year operating performance.
A major new deal announced by the company in, which could be worth £15m-£20m a year to its laminates division, is on track to begin in April 2012.
The company had also recently industrial action at its API Holographics site in Salford, which has been identified as a key site for future investment following its withdrawal from the Chinese market. However, following a one-day protest last week workers from the Unite union suspended action planned for this week and next while negotiations with management over pay are recommenced.
