Carclo plc Carclo Strategic Decision to Close Derry Facility (2987R)
October 25 2023 - 10:16AM
UK Regulatory
TIDMCAR
RNS Number : 2987R
Carclo plc
25 October 2023
25 October 2023
Carclo plc
Carclo plc Announces Strategic Decision to Close its US Derry NH
Facility
Ossett, October 25, 2023 - Carclo plc, the leading global
provider of high-precision components, offering comprehensive
services from mould design, automation, and production to assembly
and printing, serving the life sciences, aerospace, optics, and
tech sectors, announces a strategic decision to cease operations at
its US Derry NH facility.
The facility, acquired in 2016 with the aim of expanding
toolmaking capabilities, was transitioned into an injection
moulding shop catering for short run business for diverse markets.
After careful evaluation and a comprehensive review of the Group's
strategy, Carclo has determined that the short run business and its
associated projects do not align with the company's long-term
strategic vision and as such the decision to close the Derry
facility was reached.
The Group acknowledges and values the contributions of every
team member to both the Derry facility and the organisation. It's
essential to note that this decision does not undermine the
dedication, professionalism, and hard work exhibited by the Carclo
Derry team.
The one-time expenses associated with the facility closure are
estimated to total GBP0.8 million (including asset write offs,
inventory and fixed assets), with a cash outflow of GBP0.2 million.
These costs are integral to the execution of our transition plan.
The strategic move is expected to result in annualized savings of
approximately GBP0.4 million in unadjusted EBIT (uEBIT).
To support affected employees during this transition, Carclo is
implementing a comprehensive employee support plan. This focusses
on job placement assistance and access to counselling and career
transition resources.
Customers and suppliers who have been partners with the Derry NH
facility will receive specific communications regarding the
closure. Carclo is committed to addressing their concerns and
ensuring a smooth transition for all ongoing contracts and
arrangements.
This decision aligns Carclo's operations with its core strategy
of factory specialization, process standardization, operational
excellence, financial stability, and sustainability.
Enquiries
For further information or enquiries regarding this
announcement, please contact:
Carclo plc - 01924 268040
Frank Doorenbosch - Chief Executive Officer
Eric Hutchinson - Chief Financial Officer
About Carclo plc
Carclo plc is a public company whose shares are quoted on the
Main Market of the London Stock Exchange. The Group is a preferred
and trusted partner of global customers, offering high-precision
critical components that meet the needs of life sciences,
aerospace, optics, and technology industries.
LEI: 21380078MEM399JPI956
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