Prominent UK trade moulder Stadium Group (Stephen House, Brenda Road, GB - Hartlepool TS25 2BQ; www.stadium.co.uk) is selling its plastics division in order to concentrate on the development of its electronics business. The move follows a three-month strategic review of operations which concluded that electronics provided the opportunity for a greater rate of organic growth. Also, the group does not have the financial resources to invest in both the electronics and plastics sectors.

Stadium has three injection moulding factories with more than 150 machines in total: at Hartlepool, Hinckley in the East Midlands and at Newton Abbot, Devon. Its two toolmaking operations are Durham-based Swift and Torbay Tool & Gauge in Newton Abbot. Ancillary businesses in the plastics division include the production of ventilation products for the construction market (Stadium Building Products) and baby and nursery products (Quest Consumer Products). Last year the plastics division contributed GBP 27m to the group´s GBP 89.9m turnover, which yielded pre-tax profits of GBP 4.1m, down 30% on 1999.

A statement from Stadium says it believes, “there are greater opportunities for the plastic injection moulding businesses... if they were to become part of a larger plastics organisation, providing enhanced access to economies of scale and extended markets.”

Stadium believes the sale of the plastics activities will be completed within 18 months, although no time limit has been imposed because the disposal is seen as strategic rather than tactical. Sales from the moulding plants in 2001 have been about 10% down on last year, but are now understood to be approaching full volume following the launch of the new BMW Mini.