£57m-turnover plastics firm set to close down diagnostics business

WEST YORKSHIRE plastics manufacturer Carclo is getting ready to close down its diagnostics business after a review found that there was no “credible strategic option” to take Carclo Diagnostics Services forward.

In April, Carclo announced it had appointed advisors to decide on the future of the diagnostics business.

Options included co-investments, divestment, and the creation of an independent CDS business outside the Carclo Group.

However the business said that CDS would “require an increasing level of future investment” and that there was no certainty of future commercialisation. With no investors forthcoming, the business said it would be discontinuing investment in CDS, at a cost of £1.0m

It invests around £1.5m in the business a year. Investments in CDS will now be written-down.

The Ossett-based technical plastics manufacturer, which creates components for everything from medical devices to supercars,

In 2014, the firm saw a write-down of another division, CIT Technology.

The costs associated with exiting the firm’s CIT Technology business and the closure of the firm’s Scotland facility in Harthill came to £31.7m, which affected pretax profits.

Chris Malley, Carclo CEO, commented:”The Group’s core focus and growth opportunities sit within our two main divisions, Technical Plastics and LED Technologies, both of which are performing well and have excellent and exciting prospects.

“While CDS’ technical progress has been consistent with our published roadmap, the Board considers that now is the appropriate time to withdraw funding from this business, given the uncertainty over its future commercial success and the financial commitment required to take it forward.”