22nd Jan 2007 14:00
Cookson Group PLC22 January 2007 22 January 2007 UK PRECIOUS METALS RESTRUCTURING Cookson Group plc ("Cookson" or "the Group"), a leading materials sciencecompany, has announced the next stage of the programme to restructure its UKPrecious Metals business. This business consists of a manufacturing operation producing alloy materials,components and semi-finished and finished jewellery, and a distribution andlogistics operation supplying these products to manufacturers, designers,independent jewellers and retailers. The distribution and logistics business was restructured in 2006 with theimplementation of new call centre and internet selling systems and is now aleader in the UK marketplace. The manufacturing business has, however,continued to suffer from weakening demand in the industry overall and increasingcompetition from low cost imports. Against this background a fundamental restructuring of the manufacturingoperation is proposed, to be implemented on a phased basis during 2007. This will result in the closure of the Wrexham factory, which produces chain andfindings, with the manufacturing transferring to a new site in Thailand. Themajority of the stampings operation currently undertaken in Birmingham willrelocate to the same Thai facility, and certain other products will increasinglybe sourced from the Group's US-based precious metals business. The Dublin salesoffice will close, with the Irish market being served direct from the UK as wellas through a local distributor. These initiatives, which are expected to result in the loss of some 80 jobs,will result in annualised cost savings of approximately £2.0 million, at aone-off cash restructuring cost in 2007 of approximately £1.8 million andcapital expenditure of £0.6 million. Following the restructuring, the Precious Metals division will continue toemploy some 200 people in the UK, at its manufacturing and call centrefacilities in Birmingham and at its Hatton Garden distribution centre in London. Nick Salmon, Chief Executive of Cookson, said: "Whilst trading in our UK Precious Metals business has continued in line withexpectations over recent months, the UK market remains subject to increasing lowcost imports and hence these measures are necessary in order to ensure ourcompetitiveness. The new structure will combine access to continued high quality manufacturing atlower cost, together with a state of the art logistics and distributionoperation run from our facility in Birmingham." For further information please contact: Shareholder/analyst enquiries: Cookson Group plcIsabel Luetgendorf, Investor Relations Manager Tel: +44 (0)20 7822 0000 Media enquiries: Hogarth Partnership John Olsen Tel: +44 (0)20 7357 9477 About Cookson Group plc Cookson Group plc is a leading materials science company operating on aworldwide basis in Ceramics, Electronics and Precious Metals markets. The Ceramics division is the world leader in the supply of advanced flow controlrefractory products and systems to the global steel industry and a leadingsupplier of specialist ceramic products to the glass and foundry industries. Itis also a regional leader in the US, UK and Australia in the supply andinstallation of monolithic refractory linings. The Electronics division is a leading supplier of advanced surface treatment andplating chemicals and assembly materials to the automotive, construction andelectronics markets. The Precious Metals division is a leading supplier of fabricated precious metals(gold, silver, platinum, etc.) to the jewellery industry in the US, the UK,France and Spain. Products include alloy materials, semi-finished jewellerycomponents and finished jewellery. Forward Looking Statements This announcement contains certain forward looking statements which may includereference to one or more of the following: the Group's financial condition,results of operations, cash flows, dividends, financing plans, businessstrategies, operating efficiencies or synergies, budgets, capital and otherexpenditures, competitive positions, growth opportunities for existing products,plans and objectives of management and other matters. Statements in thisdocument that are not historical facts are hereby identified as "forward lookingstatements". Such forward looking statements, including, without limitation,those relating to the future business prospects, revenues, working capital,liquidity, capital needs, interest costs and income, in each case relating toCookson, wherever they occur in this document, are necessarily based onassumptions reflecting the views of Cookson and involve a number of known andunknown risks, uncertainties and other factors that could cause actual results,performance or achievements to differ materially from those expressed or impliedby the forward looking statements. Such forward looking statements should,therefore, be considered in light of various important factors. Importantfactors that could cause actual results to differ materially from estimates orprojections contained in the forward looking statements include withoutlimitation: economic and business cycles; the terms and conditions of Cookson'sfinancing arrangements; foreign currency rate fluctuations; competition inCookson's principal markets; acquisitions or disposals of businesses or assets;and trends in Cookson's principal industries. The foregoing list of important factors is not exhaustive. When relying onforward looking statements, careful consideration should be given to theforegoing factors and other uncertainties and events, as well as factorsdescribed in documents the Company files with the UK regulator from time to timeincluding its annual reports and accounts. Such forward looking statements speak only as of the date on which they aremade. Except as required by the Rules of the UK Listing Authority and the LondonStock Exchange and applicable law, Cookson undertakes no obligation to updatepublicly or revise any forward looking statements, whether as a result of newinformation, future events or otherwise. In light of these risks, uncertaintiesand assumptions, the forward looking events discussed in this announcement mightnot occur. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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