Cope Allman, the Portsmouth-based healthcare packaging group, plans to close two Jaycare production sites in Tyneside only weeks after it rescued the rigid plastics manufacturer from administration.
Jaycare currently has three production sites and one warehouse in the Tyneside area, which includes the headquarters at New York, North Tyneside.
Cope Allman Jaycare director of operations Peter Darlington said the company anticipates retaining around 80% of Jaycare's production output and the majority of jobs.
More than 200 jobs were put at risk when Newcastle-based Jaycare went into administration in January.
Management entered into consultation with the workforce this month with a view to avoiding reductions in the workforce and minimising the damage.
Cope Allman purchased rival, Jaycare from administrator KPMG on 3 March.
Cope Allman commercial manager Adam Dowse said the firm shared a number of customers with Jaycare and offered similar services, including injection blow moulding, extrusion blow moulding and secondary decorating.
The company's purchase of Jaycare was supported by the One NorthEast development agency, which advised management throughout the process.
Cope Allman reported a pre-tax profit of £190,449 for the year to 31 December 2006, compared with a £460,000 loss in the previous year, on sales down almost 10% to £11.8m.
Jaycare was acquired in 2004 by Phoenix Equity Partners, before it was bought out in April 2006 in a £4m refinancing backed by Allied Irish Bank and HBOS.
Jaycare reported an operating loss of £426,000 in the year to 1 April 2006, the last period for which accounts are available. Some £11.8m of its £17.8m turnover was generated in the UK with the balance from the rest of the world.
Source: packagingnews
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