Neschen closes loss-making plant in England

The company Neschen AG based in Bückeburg is closing its UK production plant in Basildon in mid-2012. Around 30 employees work at this plant producing self-adhesive products mainly for intercompany deliveries to Neschen AG and its US subsidiary. The plant closure should lead to an improvement in the group's EBITDA of 1.3 million euros from 2013 onwards.

The independent British sales company Neschen UK Ltd. will not be affected by the closure of the production plant in Basildon, however. Neschen is currently looking for a new and attractive location for the sales and support team.

Neschen had acquired the UK production plant following the takeover of Seal in 2001. Right from the start, the UK production facility contributed very little to the group's production volume. During the economic crisis in 2008/2009, the utilised capacity of the UK coating plant worsened progressively. According to Neschen, an earlier plant closure would not have been economically viable due to contractual agreements.

"The plant mainly supplied Neschen AG with high-quality protective films for niche markets," said Board member Stefan Zinn. "As a result of the low coating volume in this area, the plant has been making a loss for years." The current trend towards environmentally friendly products confirmed Neschen's resolution to close the plant now. "As a result of the technical advancements in water-based adhesives, we can no longer see any positive perspective for this production plant. This is why we have decided to close the plant by the end of 2012."

Neschen announced that a complete printing and finishing product range will continue to be available in the future. "Nothing will change for our customers,“ Stefan Zinn affirmed "they will continue to receive their goods on time and at the high level of quality they have become accustomed to."

 PI Neschen closes loss-making plant in England