Weir Group Regulatory News (WEIR)

16 Feb 2007 07:01

Weir Group PLC16 February 2007 THE WEIR GROUP PLC 16 February 2007 at 7am The Weir Group PLC ("the Group") is in advanced stages of discussions withSulzer AG in connection with the sale of the Glasgow based business unit of WeirPumps for an expected consideration of £48 million. The unit manufactures custom-engineered pumps for the upstream oil and powergeneration markets. Under the terms being discussed, all 596 employees willtransfer to Sulzer on their existing terms. Sulzer will retain a significantengineering, design and technical sales presence in addition to a spares andaftermarket manufacturing facility in Glasgow. However, significant operationalredundancies related to the original equipment business are to be anticipated inthe run up to the previously announced closure of the Cathcart facility in 2009.Appropriate retention incentives and redundancy packages will be offered toaffected employees. Weir Services Division does not form part of the discussions and the 660Services Division employees in the UK, including 116 based in Glasgow, willremain part of the Group. The head office of The Weir Group PLC continues to besituated in Glasgow. Mark Selway, Chief Executive of The Weir Group PLC, commented: "Weir Pumps business represents 8% of Weir Group revenue and a lower percentageof annual profits. The business competes in the global marketplace againstmanufacturers who have an established presence in low cost countries. We havebeen evaluating all options regarding the future of the business and haveconcluded that, if the right terms can be agreed, Sulzer will be better placedto realise the potential of the engineered pumps business and that this salewill represent the best way forward for the business and shareholders alike." A further announcement will be made in due course. Contact details: The Weir Group PLCMark Selway, Chief Executive Tel. 0141 637 7111 (switchboard);Helen Walker, Public Relations Manager Tel. 0141 308 3739 (Mobile: 07789 032296)Maitland Tel. 020 7379 5151Suzanne Bartch (Mobile: 07769 710 335)Peter Ogden This information is provided by RNS The company news service from the London Stock Exchange