Scapa axes jobs as sales nosedive

SCAPA, the North West technical tapes manufacturer said today it was cutting 140 jobs – more than 10% of its global workforce after a “marked reduction” in revenues in the last few months.

The Ashton-under-Lyne-based group said sales in December had slumped 34% on the same month in 2007, while January’s sales are predicted to be down by around 15%.

Scapa’s tapes are used in a variety of industrial sectors, from construction and automotive to making nasal breathing strips for the health care market.

A trading statement said: “In response to the rapid downturn in activity the group has taken a series of actions to permanently reduce its cost base. These actions will result in a reduction of the group’s worldwide workforce by approximately 140 employees by the end of March, of which 110 have already left. 

“Exceptional charges in respect of this programme are expected to amount to around £1.5m in this year’s accounts.”

On top of this, Scapa said it was considering closing a plant in France, with the loss of a further 68 jobs.

Chief executive, Calvin O’Connor, said: “Scapa regrets the reduction in the number of employees and we are working with employee representatives to limit the impact of these changes.

“We have taken action to maintain the overall commercial and financial strength of the group at this time of unprecedented uncertainty and current severe downturn in market demand.”