Carclo PLC
14 September 2000
CARCLO PLC
Disposal of Wire Rope Business
Carclo plc, the technical plastics group, announces the sale
of its Brunton Shaw wire rope manufacturing business to a
newly formed subsidiary of Usha Beltron Ltd. to be called
Brunton Shaw UK Ltd.
Brunton Shaw UK Ltd. will purchase the operating assets of
Brunton Shaw, excluding land and buildings, for cash at book
value which is estimated to be £3.6 million at completion.
Carclo will invest £320,000 in Brunton Shaw UK Ltd. in return
for a 20% equity share. Carclo has retained the land and
buildings of the business with a book value of £1.7 million
which will be leased by Brunton Shaw UK Ltd.
Usha Beltron Ltd., a publicly quoted Indian company, is a
world leading supplier of wire rope. The sale agreement is
conditional upon satisfactory consultation with the affected
employees.
In the year to 31 March 2000, the business being sold had
sales of £8.4 million and generated an operating profit of
£0.3 million.
Linked with this disposal, and the continuing difficult
trading conditions in the UK wire industry, Carclo intends to
close the business of Lee Smith Wires at Ecclesfield, South
Yorkshire. The cost of closure is estimated to be
£1.2million.
The divestment of the wire rope business of Brunton Shaw, the
closure of Lee Smith Wires and the previously announced sale
of John Shaw (NZ) Ltd. complete our withdrawal from low added-
value wire operations. Carclo's specialist wire division,
which now represents 25% of the group, is focused on niche
products where we have strong world market positions, based
on proprietary technology.
For further enquires please contact:
Carclo plc
Ian Williamson, Chief Executive 01924 330 500
Chris Mawe, Finance Director
Golin/Harris Ludgate
Richard Hews 0207 253 2252
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