Macfarlane Group (21 Newton Place, Scotland-Glasgow G3 7PY) has sold its injection moulding subsidiary Daniel Montgomery & Son (Kirkintilloch, Scotland-Glasgow G66 1ST) for a total cash sum of GBP 2m. Montgomery, which has a staff of 121 and a turnover of GBP 7m, produces closures for the spirits industry and has been bought by Alucapvit, an Italian manufacturer of closures, that operates throughout Europe.

The sale is part of Macfarlane´s continuing restructuring programme and recognises that Montgomery needs to be a member of a larger organisation so it can meet the demands of spirits customers operating on a global basis. The net assets on disposal amount to GBP 6.5m and Montgomery´s operating losses for 1999 are expected to total GBP 1.2m, despite a reorganisation programme in 1998 aimed at reducing overheads and concentrating on higher value products.

Macfarlane has added to its recently-formed plastics division, which comprises six companies operating from seven sites, by the purchase of a further film extrusion business. Ketts Products (Little Green, Bunwell, GB-Norfolk NR16 1SP), has been bought for GBP 900,000 and is expected to bring additional annual sales of GBP 2m to the division´s GBP 65m turnover.

Chief executive Mike Clark says the division, which trades as Macfarlane Plastics (Walton Summit Industrial Estate, Bamber Bridge, GB-Preston PR5 8AE), is currently reducing the layers of management within individual subsidaries, at a cost of GBP 400,000. At the same time, the company is continuing to look for further small acquisitions that will supplement organic growth.

Restructuring continues in the packaging division of Macfarlane. This will result in the closure of an, as yet unidentified, site in England and two rented storage premises in Glasgow. Across the group, restructuring will mean the loss of up to 150 jobs and the departure of 25 senior managers.