MoD contract award and outsourcing of UK dairy

 

TIDMAVON 
 
RNS Number : 8724P 
Avon Rubber PLC 
01 April 2009 
 

 
 
 
 
N E W S R E L E A S E 
 
 
 
 
 
 
Strictly embargoed until 9.30 a.m. Wednesday 1 April 2009 
 
 
 
 
AVON RUBBER p.l.c. 
("Avon", the "Group" or the "Company") 
 
 
MoD CONTRACT AWARD AND OUTSOURCING OF UK DAIRY MANUFACTURING 
 
 
Avon announces the placement of a further contract by the UK MoD for the UK 
military's in-service respirator, the S10. The Company has now been the sole 
supplier of the S10 to UK forces for over two decades and the recently awarded 
contract demonstrates the MoD's continuing trust in Avon's product. The contract 
is worth GBP4.49 million but has the potential to exceed GBP10 million over 
three years.  The masks will continue to be made at the Company's Hampton Park 
West manufacturing facility in Wiltshire, UK. 
 
 
Peter Slabbert, CEO commented, 'This contract, together with Avon's supply of 
our new M50 gas mask to the US DoD, reinforces our position as the world leader 
in military respirators. We are grateful to the MoD for their support and 
continued confidence in Avon's product.' 
 
 
In addition, to improve the performance of our UK based operations in these 
difficult economic times, the Company is proposing to outsource the manufacture 
of all dairy products currently made at Hampton Park West, Wiltshire, to a Czech 
Republic based supplier.  Consultation with employees over this proposal and the 
redundancies that would result from it has commenced, with the transfer 
scheduled to be completed before the end of the 2009 calendar year. The costs of 
this transfer are expected to be recouped within two years. 
 
 
 
 
Peter Slabbert said, 'Whilst the potential loss of jobs from the transfer of 
dairy manufacture is regrettable, the move not only secures the viability of our 
remaining UK operations but will enhance the future profitability of the Group. 
 
 
Since our AGM statement in January, trading in the first half of FY 2009 has 
continued to improve in line with our expectations.' 
 
 
 Our half year interim statement is expected to be made on 21 May 2009. 
 
 
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For further enquiries, please contact: 
 
 
+-----------------------------------------+-------+--------------------------------+ 
| Avon Rubber p.l.c.                      |                                        | 
+-----------------------------------------+----------------------------------------+ 
| Peter Slabbert, Chief Executive         |                           01225 896831 | 
+-----------------------------------------+----------------------------------------+ 
| Andrew Lewis, Group Finance Director    |                                        | 
+-----------------------------------------+----------------------------------------+ 
| Fiona Stewart, Corporate Communications         |                   01225 896871 | 
| Executive                                       |                                | 
+-------------------------------------------------+--------------------------------+ 
| Weber Shandwick Financial               |                                        | 
+-----------------------------------------+----------------------------------------+ 
| Nick Oborne                             |                          020 7067 0700 | 
+-----------------------------------------+----------------------------------------+ 
| Clare Perks                             |                                        | 
+-----------------------------------------+----------------------------------------+ 
|                                         |                                        | 
+-----------------------------------------+-------+--------------------------------+ 
 
 
 
 
 
 
NOTES TO EDITORS: Avon Rubber p.l.c. is a world leader in the design, test and 
manufacture of advanced Chemical, Biological, Radiological and Nuclear (CBRN) 
respiratory protection solutions to the worlds military, law enforcement, first 
responder, emergency services, fire and industrial markets. Avon has a unique 
capability in CBRN protection based on a range of advanced CBRN technologies in 
respirator design, filtration and compressed air breathing apparatus. This 
enables Avon to develop specialised solutions that take full account of user 
requirements. Avon also owns a world leading dairy business manufacturing liners 
and tubing for the automated milking process. For further information please 
visit the Group's website www.avon-rubber.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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