Profits boost for Moodiesburn firm

Moodiesburn-based sausage skin manufacturer Devro has reported a sharp increase in half-year profits, thanks in part to job cuts in Scotland.
By The Newsroom
Published 5th Aug 2015, 10:35 BST
Devro's base at Moodiesburn.Devro's base at Moodiesburn.
Devro's base at Moodiesburn.

The company has axed 130 jobs in Scotland while creating new manufacturing bases in the USA and China.

The UK accounts for around 12 per cent of overall sales, whilethe American and Asian markets are almost treble that figure.

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The firm saw pre-tax profits rise to £9.6million for the six months to the end of June, up £1.6million over the same period during the previous year,

Chief executive Peter Page said: “Sales volumes have continued to grow in several important markets and prices remain firm.

“We have made good progress in transforming our manufacturing facilities to support future growth and manage costs, with restructuring completed and the major investment projects on track for completion in 2016.”

“Market demand is strong, input costs are stable and productivity improving, giving confidence for the future.”

The largest element of the increase in operating profits is said to have come from the cost reductions which followed the restructuring of operations in both Scotland and Australia.

Related topics:ScotlandChinaUSA