1st Aug 2007 07:01
Yule Catto & Co PLC01 August 2007 Yule Catto & Co. plc Investment in China and plant rationalisation Yule Catto is an international producer of speciality chemicals, supplied toglobal customers for use in a wide range of industries includingpharmaceuticals, FMCG, paints and adhesives Yule Catto announces that it has entered into employee consultations regardingthe closure of the Dieburg, Germany facility within its James Robinson businessand the Milan, Italy facility within its Uquifa business. Subject to the outcomeof such consultations it is anticipated that these closures will be completed bythe end of H2 2008. The existing cytotoxic and pilot plants in Italy willremain open. Production from both plants will be selectively moved within the Grouppredominantly to other Uquifa facilities in Spain and Mexico. The overallclosure costs are expected to be cash neutral following the sale of therespective sites. In parallel the Company intends to invest in a small scale greenfield FineChemicals facility in Guangzhou, China. The purpose of this plant will be toaccelerate sales growth into Asia and enhance the cost effective supply ofintermediary products into Yule Catto's existing Fine Chemical and Pharmachembusinesses. The changes outlined above are a strategic response to current market dynamicsand in addition will deliver enhanced utilisation of fine chemical assets withinthe Yule Catto group of companies. 1 August 2007 ENQUIRIES: YULE CATTO Tel: 01279 442791Adrian Whitfield, Chief Executive COLLEGE HILL Tel: 020 7457 2020Gareth David This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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