De La Rue cuts banknote printing capacity
Updated : 09:36
De La Rue plans to reduce its banknote printing capacity from 8bn banknotes per year to 6bn as it looks to save costs and bring production in line with current market demand.
The banknote printer also said it will cut its production lines to four from eight.
De La Rue will consolidate banknote production into three “centres for excellence”: Gateshead in the UK, Kenya and Sri Lanka. The company’s banknote printing operation in Malta will be closed down.
The restructuring will affect around 400 jobs, with approximately 300 at risk of redundancy, mainly in Malta.
The company, which also makes passports, said it expects to save in excess of £13m per year from full year 2018/19 in addition to its existing ongoing cost savings initiatives.
Chief executive Martin Sutherland said: “As the leading commercial designer and printer of banknotes and passports, our manufacturing footprint review has identified significant opportunities for improvements in capability and efficiency.
“Today we are announcing plans to achieve a more streamlined De La Rue, in line with the future needs of our global customers, focused on centres for excellence with investment that underpins our future.”
At 0930 GMT, shares were up 3.9% to 477p.