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Foundry Daily News

11. December 2016

UK - Foundry firm closes Leicester business

A Walsall-based foundry business has announced the closure of an operation in the East Midlands after incurring a near £400,000 first half loss.

Chamberlin announced a statutory post-tax loss of £391,000 in the first half (2015: loss of £367,000) – prompting the decision to close the factory in Leicester, which it said was the least specialised of its three foundries.

Overall, the firm said results for the first half were in line with management expectations and the group remained on track to achieve market expectations for the full year.

Revenues for H1 were £16.4m (2015: £18.0m), with an underlying pre-tax profit of £8,000 (H1 2015: £57,000).

Chamberlin chairman, Keith Butler-Wheelhouse said: “Results for the first half are in line with management expectations and reflect the anticipated picture across our foundry activities.

“We recently took the difficult decision to close our non-core foundry at Leicester, the least specialised of the group’s three foundries, which has been suffering from reducing demand.

“We are now close to completing our initial investment in new machining capability at Walsall, which is opening up additional opportunities and underlines Walsall’s ability to deliver a world class product at a globally competitive cost.”

He added: “Demand at this (Leicester) foundry, whose area of activity is the least specialised, has been subdued for many years and it is clear that production is no longer economically viable. We expect operations at Leicester to cease by the end of the year.”

The closure is not expected to impact the group’s pre-tax profit forecasts.

Source: thebusinessdesk.com

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