Company Update

RNS Number : 6691R

Essentra plc

25 September 2017

 

ESSENTRA PLC

A leading global provider of essential components and solutions 

ASSESSMENT OF RECENT HURRICANE ACTIVITY IN THE AMERICAS

Essentra plc ("Essentra" or "the Company") today confirms that its two Health & Personal Care Packaging sites in Puerto Rico have been disrupted as a result of the recent Hurricane Maria. 

While the facilities at Manati and Guaynabo have not sustained significant physical damage, they have not been operational since 19 September 2017.  Since this time, Essentra has focused its efforts on ensuring the safety of its 345 employees in Puerto Rico, and providing both them and customers with whatever practical support it can during these extremely challenging conditions. 

Notwithstanding that both sites are fundamentally intact, there are significant impediments to resuming manufacturing activity, including the circumstances of employees, availability of power, ongoing disruption to general infrastructure and the extent to which customers themselves have been impacted (among other considerations).  As a result, it is not currently possible to confirm the timing that normal output levels will be resumed; however, this is unlikely to be in the immediate future.  To the extent that the two facilities are not operational, the financial impact is estimated to be in the range of £500,000 - 750,000 per week, a significant part of which is expected ultimately to be recovered through the Company's comprehensive insurance policies.  

Having already experienced some minor disruption from Hurricanes Harvey and Irma to its sites in Houston, Largo and Puerto Rico, Essentra estimates the profit impact from these previous storms (ie, pre-Maria) to be in the range of £0.5 - 1.0m. 

Commenting on today's announcement, Paul Forman, Chief Executive, said:

"Our experienced local team was very well prepared for the hurricane strike, and - supported by colleagues from the wider Health & Personal Care Packaging - Americas business - has done an excellent job of managing events to date, thanks to their tireless efforts and commitment.

With communications in Puerto Rico remaining sporadic, our ongoing priority is confirming the safety of all our employees and on providing them with whatever assistance we can, including the shipment of emergency provisions as soon as ports and the airport reopen.  We are also in regular dialogue with our customers - most of whom are in a similar position regarding the status of their own operations and workforce - and have already implemented business continuity plans to transfer orders to Essentra facilities in mainland United States and beyond. 

Given the exceptional nature of Hurricane Maria and the current level of uncertainty regarding its ongoing impact, the Company is clearly continuing to closely monitor the situation in Puerto Rico and will provide an update in our next trading statement, or when we have greater clarity if earlier."      

Enquiries

Essentra plc Joanna Speed, Corporate Affairs Director Tel: [phone]

Ogilvy PR London Jeremy Lucas Tel: [phone] E-mail: [e-mail]

Notes to Editors

About Essentra plc

Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions.  Essentra focuses on the light manufacture and distribution of high volume, enabling components which serve customers in a wide variety of end-markets and geographies.

Component Solutions

The Components business is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items.  Operating units in 29 countries serve a very broad industrial base of customers with a rapid supply of products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics and construction.

The Pipe Protection Technologies business specialises in the manufacture of high performance innovative products from commodity resins to engineering-grade thermoplastics and polymer alloys for use in a range of end-markets.  Locations in four countries, combined with a wide distributor network, serve customers around the world.

Essentra Extrusion is a leading custom profile extruder located in the Netherlands which offers a complete design and production service.  One of the first companies to extrude plastics in 1956, Essentra is now one of Europe's most advanced suppliers of co-extrusion and tri-extrusion to all branches of industry.

The Security business has access to a wide portfolio of products and services, including printers, software and consumables from leading manufacturers.

Health & Personal Care Packaging

A leading global provider of packaging and authentication solutions to a diversified blue-chip customer base in the pharmaceutical, health & personal care, consumer and specialist packaging sectors.  The business focuses on delivering value-adding innovation, quality and service through the provision of a wide range of printed products and solutions, including cartons, tapes, leaflets, foils, labels and authentication solutions.

The Speciality Tapes business has expertise in coating multiple adhesive systems in numerous technologies.  With close to 3,000 adhesive products available for same-day shipping, Essentra's products can meet all high performance needs, from foam, magnetic, finger lift and acrylic high bond tapes to hook and loop and non-skid foam.

Filter Products

Essentra Filter Products is the only global independent cigarette filter supplier.  The nine worldwide locations, including a dedicated Technology Centre supported by three regional development facilities, provide a flexible infrastructure strategically positioned to serve the tobacco industry.  The business supplies a wide range of value-adding high quality innovative filters, packaging solutions to the roll your own segment and analytical laboratory services for ingredient measurement to the industry.

Headquartered in the United Kingdom, Essentra's global network extends to 33 countries and includes c. 8,000 employees, 48 principal manufacturing facilities, 64 sales & distribution operations and 4 research & development centres. For further information, please visit www.essentraplc.com.

 

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