by Ian Walker
Escentra Plc said on Friday it has begun a review of its packaging unit, as part of the company’s plan to focus entirely on its components business.
The FTSE 250 plastic and fiber products supplier, which has already started reviewing its filter business, said the two reviews will run in parallel. Both are expected to be finished by the second quarter of next year at the earliest. The packaging unit generated approximately 41% of group revenue for 2020, while the filter unit generated approximately 31%.
Essentra said on 26 October that its plan to become a global components business over time will enable “a strategic focus and accelerated growth in organic and inorganic.”
The packaging unit has been hit by soft coronavirus-induced demand, labor shortage and rising material cost, it said at the time. Esantra also said that the filter business has made significant progress over the past four years and has attractive long-term growth prospects.
Write to Ian Walker at [email protected]