Mpac Group Plc Regulatory News (MPAC)

24 May 2006 07:01

Molins PLC24 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 orotherwise 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 anddistribution operations presently conducted in Bologna, together with all theadministration and engineering functions, will be closed. The Head Office ofMolins Tobacco Machinery will coordinate activities to support customers withaftermarket services. The action that is now being taken is in response to the sales being generatedby the business which do not support the cost base in Italy. Operating lossesat Sasib for the first four months of 2006 amounted to £1.2m. The cash costs ofclosure 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 onclosure. 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