Durex maker in move to India

DUREX maker SSL International became the latest manufacturer to shift production to Asia as it announced plans to close one of its Scholl footwear plants in the UK.

The closure of the Derby site, which is mainly involved in the packaging of footcare products, is expected to result in the loss of 124 jobs. SSL has already built up a sizeable manufacturing presence in Asia but still has some plants in the UK, including at Peterlee, County Durham and Redruth, Cornwall. It is expected the Derby plant will close by the end of this year.

In a statement to the Stock Exchange today, SSL said that a gradual run-down of the plant was planned following consultation with employees and trade unions. The Derby site is expected to close altogether in December.

The company recently said turnover from continuing operations was £203.2m in the six months to September 30, down slightly on the £203.9m at the same stage last year. Half-year operating profits rose by 50% to £19m.

SSL's main operations are now focused on its Durex and Scholl brands following the sale of its antiseptics and surgical gloves business, Regent Infection Control, to a management buy-out team for £173m. The sale of its medical products business meant debt could be reduced and management could concentrate on the consumer brands that account for the lion's share of business.

The company's shares remain some 15% ahead of their trading level late last year following mounting bid speculation. Reports last month named US battery group Energizer as one company preparing to swoop on SSL but several other bidders are thought to be circling. SSL shares today were down 4p at at 325p, valuing the company at £617m.