No commercial openings for UK firm’s Greenseal trays.
A review of business operations at Stanelco instigated by recently appointed chief executive Paul Mines has led to a number of negative decisions for the radio welding technology and biopolymers group. The results of the review, which will adversely affect its trading performance in this financial year, were covered by a trading statement issued this morning.
The UK company’s board says that trials of its Greenseal radio frequency welded tray system have been concluded and it has decided that “they are unlikely to lead to any commercial sales for this particular application”. The company has staked considerable hopes on the future of the technology which has been on test at Asda stores
Stanelco has also shelved plans for a US plant to produce the biopolymers made by German firm Biotec, in which it holds a half share, as its intention to take 50% of the plant’s output has not been fulfilled. In addition, the company notes, it is facing a challenge to patents covering some of Biotec’s products. It is currently evaluating the significance of these challenges, it says.
In a further decision, Stanelco is to sell some of the assets of its Adept Polymers business to MonoSol AF for nearly £500,000 and may, in future, license Aquasol’s Frogmat intellectual property.
Further cost cutting is planned to ensure that the company’s £11m cash balance is used towards a cash positive trading position.
