Plastics Capital cuts jobs but predicts gradual improvement

In an update on trading today (19 February) the company said its results for the year to 31 March 2009 were expected to be in line with market expectations. It added that trading conditions continued to be challenging with volumes being affected. However, there was some indication that the downturn was starting to bottom out, although the company believes certain sectors would continue to be affected through 2009, and any improvement was likely to be gradual. Plastics Capital – which has five UK factories in Knaresborough, Yorkshire; Dartford, Kent; Wellingborough, Northants; Poole, Dorset; and Dunstable, Beds; plus a factory in Thailand – said cost reduction measures were being implemented across the group, primarily reducing headcount in line with lower demand, although it did not say where the job losses would fall. In addition, the company said agreement had been reached to dispose of a small non-core operation, Mulberry Plastics. Executive chairman Faisal Rahmatallah said: "The Group remains relatively resilient in the face of the global downturn. By maintaining export focused sales and marketing activity, we are well positioned to benefit from sterling's weakness when global demand picks up."