Wed, Sep

Neschen to close UK production plant

Neschen will close its UK production plant in Basildon by the middle of the year with the loss of 30 jobs. Neschen UK will not be affected by the closure but is looking for a new location for its sales and support team.

The Basildon plant produces protective films for niche markets. It is hoped that its closure will lead to an improvement in the group's EBITDA of 1.3 million euros (£1.09m) from 2013. ??

Neschen had acquired the UK production plant following the takeover of Seal in 2001. During the economic crisis in 2008/2009, the utilised capacity of the UK coating plant worsened progressively. Board member Stefan Zinn said: "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 it." ??

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



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