Molins PLC
24 May 2006
24 MAY 2006 FOR IMMEDIATE RELEASE
MOLINS PLC
SASIB
The Board of Molins PLC, the international specialist engineering group,
announces today its intention either to sell its Sasib S.p.A. subsidiary or
otherwise to close Sasib's manufacturing and operations facility in Bologna,
Italy.
Discussions with potential acquirers are currently taking place.
If no acquirer is found within the next few weeks, the sales, service and
distribution operations presently conducted in Bologna, together with all the
administration and engineering functions, will be closed. The Head Office of
Molins Tobacco Machinery will coordinate activities to support customers with
aftermarket services.
The action that is now being taken is in response to the sales being generated
by the business which do not support the cost base in Italy. Operating losses
at Sasib for the first four months of 2006 amounted to £1.2m. The cash costs of
closure are estimated at £6m in 2006 and a total of £2m in subsequent years.
Additionally there would be a write down of inventories and fixed assets on
closure. These costs will be separately identified in the 2006 results.
Enquiries: Molins PLC Tel: 01908 219000
Peter Byrom, Chairman
David Cowen, Group Finance Director
Issued by: Citigate Dewe Rogerson Tel: 020 7638 9571
Margaret George
This information is provided by RNS
The company news service from the London Stock Exchange