GREENOCK, SCOTLAND - Europe's top polyethylene film and packaging firm, British Polythene Industries plc, is selling a retail plastic carrier bag plant in Heanor, England.
Greenock-based BPI sold the Alida Packaging Ltd. plant to Bunzl Retail Supplies Ltd., a unit of London-based Bunzl plc.
The deal also includes retail bags produced by BPI's Xinhui, China, plant.
BPI's retail carrier bag-making business in Britain has suffered for some years at the hands of cheaper Asian imports. The businesses and assets being sold to Bunzl achieved sales of £35 million ($49 million) for the year ended June 30 but posted a small loss, according to BPI.
About 46 of 85 employees in Heanor may transfer to Bunzl. BPI intends to continue to make retail refuse sacks at the site. The deal is scheduled to close in July.
``This disposal continues our strategy of closing or selling businesses which continue to underperform,'' Cameron McLatchie, BPI chairman and chief executive officer, said in a news release. ``With the growth of imports from the Far East into the United Kingdom to serve the retail carrier bag market, it is increasingly difficult to maintain a profitable U.K. carrier bag manufacturing business.''