The plans have been ended due to an E19m group loss at SMS

The plans have been ended due to an E19m group loss at SMS

Plans to merge Mannesmann Plastics Machinery and SMS Plastics Technology’s machinery business have been cancelled due to poor financial results at SMS.

SMS chairman Dr Heinrich Weiss today announced a group loss of E19m. He said it had been incurred solely due to the poor performance of the plastics machinery business. The unit suffered “severe omissions by the plastic machinery business management that has led to restructuring measures that will continue into 2004”.

Weiss said: “The fusion has been cancelled, not just put on ice. I cannot say whether a fusion will take place in five to 10 years. It could happen within two to three years if there is a fit, but there are no plans for it now.”

He said it was unusual to have to make such a public statement, but former SMS Plastics Technology chairman Dr Helmut Eschwey had been “too optimistic in his planning”. Weiss added: “We corrected the numbers downwards and as relations with Eschwey became difficult, he had to leave to take up a new job.”

Weiss was optimistic for 2004 and believed SMS Plastic technologies will return to profitability. He said most of the 2003 loss had been due to expenditure on the restructuring measures already started last year.