Renold PLC Strategic Update (5349S)
22 December 2016 - 7:00AM
UK Regulatory
TIDMRNO
RNS Number : 5349S
Renold PLC
22 December 2016
Renold plc
("Renold", or "the Group")
Sale of Australian site and confirmation of plans to close the
Torque Transmission site in Halifax, UK
Renold, a leading international supplier of industrial chains
and related power transmission products, announces the sale of its
site in Mulgrave, Australia and confirmation of plans to close the
Torque Transmission site in Halifax, UK.
Mulgrave site sale
Renold is pleased to announce that it has exchanged contracts
for the sale of its site in Mulgrave, a suburb of Melbourne,
Australia to Makhmalbaf Pty Ltd for a consideration of A$12.5
million (GBP7.5 million), net of expenses and a contracted economic
market rent for the next three years.
The Mulgrave property is currently partially utilised as the
Group's Australian head office and manufacturing site with almost
50% of the plot unoccupied. Following the sale, the Group will work
to secure a smaller alternate site to which it will transfer
operations.
The consideration will be satisfied in cash upon completion
which is expected to be not later than three months from today. Net
disposal proceeds will be used to further the Step 2020 Strategic
Plan.
As at 30 September 2016, the site had a net book value of GBP4.6
million and the disposal is expected to give rise to a net profit
(after associated costs and tax) on sale of approximately GBP2.2
million.
Halifax collective consultation
Renold is also able to announce that collective consultation on
proposals to consolidate the manufacturing and associated processes
of the Couplings business located in Halifax, UK into the Cardiff,
UK site is concluded. Consequently it is with regret that the
Company confirms that it intends to implement the proposals.
Work will now begin to enable the transfer of all UK Couplings
manufacturing and most associated processes into Cardiff and a
corresponding winding down of activities at the Halifax site
leading to its eventual closure and the sale of the freehold site.
The transfer of activity should be largely complete by the end of
the financial year.
ENQUIRIES:
Renold plc 0161 498 4500
Robert Purcell, Chief Executive
Arden Partners 020 7614 5917
Chris Hardie
Instinctif Partners 020 7457 2020
Mark Garraway
Helen Tarbet
NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial
chains and also manufactures a range of torque transmission
products which are sold throughout the world to a broad range of
original equipment manufacturers and distributors. The Company has
a well deserved reputation for quality that is recognised
worldwide. Its products are used in a wide variety of industries
including manufacturing, transportation, energy, steel and
mining.
Further information about Renold can be found on the website at:
www.renold.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBLBDDLUDBGLB
(END) Dow Jones Newswires
December 22, 2016 02:00 ET (07:00 GMT)