Pressac plc, a troubled telecommunications and automotive molder being shopped for a potential takeover, is planning more capacity cuts and layoffs.
The Derby, England-based company would not specify the plants involved, but made clear that poor demand and uncertainty in the European automotive market mean plants in France, Germany and Italy are vulnerable.
Chris Woodwark, chairman and chief executive officer, said about 100 jobs will be cut companywide. He stressed that the downturn is in Europe, and that Pressac's North American electronics and decorative components business, Kaumagraph Flint Corp. of Millington, Mich., is ``trading quite successfully.''
European car sales were down about 8 percent in May, and Pressac claims to supply about one-third of all the decorative appliques for car instrument panels in the region.
Last year, faced with the dramatic collapse of the global mobile-phone market, Pressac made radical cuts: The firm slashed 600 jobs, or 15 percent of its work force.
However, in a June report on the company's restructuring efforts, Pressac said it still has excess capacity, especially in the automotive area. The firm's proposed new wave of cost reductions will be carried out this year, with expected annual savings of about £3 million ($4.4 million).
The company also expects to raise £10 million ($15 million) from the sale of surplus assets, including property and noncore activities, before the end of this year.
Pressac has 10 plants in six countries. The company is pinning its hopes for recovery on new business doing in-mold decoration of automotive components.
``All noncritical capital expenditure not required to achieve these aims has been canceled, representing a saving of some £2.5 million ($3.7 million) compared to previous budgets,'' the firm said in a news release.
Meanwhile, Pressac reported that its board still is in talks with potential bidders for the company.