REG - Carclo plc - Carclo Strategic Decision to Close Derry Facility

CarcloAnnouncement

25/10/2023 15:30

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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 £0.8 million (including asset write offs, inventory and fixed assets),
with a cash outflow of £0.2 million. These costs are integral to the
execution of our transition plan. The strategic move is expected to result in
annualized savings of approximately £0.4 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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