De La Rue plc today announced the creation of a centre for excellence for Identity and Security Products in Malta.
In a statement, De La Rue, which is the largest commercial supplier of passports in the world, proposes to relocate its current Security Products capability from Gateshead in the UK to Malta.
De La Rue will consult on these proposals with the relevant unions and elected representatives. Around £15m (€21.3m) will be invested in equipment and skills to create the centre for excellence at De La Rue’s current site in Malta. This equates to half the investment being made by De La Rue globally.
This investment will further enhance the Group’s Identity and Security Products capability and give the Group a competitive edge to capture the high growth opportunities in these markets globally.
The centre forms part of De La Rue’s review to optimise its manufacturing footprint. The restructuring will see the company invest £30m (€42.6) across the Group as a whole, with associated restructuring costs of £8m (€11.35) over the next two years.
As a result of the proposed creation of the centre for excellence, and subject to consultation, the current banknote printing in Malta will be phased out. This will regrettably result in a number of redundancies and a formal consultation with the affected employees is now underway.
Martin Sutherland, Chief Executive of De La Rue, said:
“As the leading commercial designer and printer of banknotes and passports, our manufacturing footprint review has identified significant opportunities for improvements in capability and efficiency. Today we are announcing plans to achieve a more focused business, in line with the future needs of our global customers, focused on centres of excellence with significant investment in our future.
Our plant in Malta has demonstrated its capabilities in identity authentication which is why we have selected it as a centre for excellence. We look forward to working with the team in Malta to grow the business in an increasingly important market.”
GWU says 300 jobs to be lost
In a statement, the General Workers Union said that it had entered into discussion with the company, adding that some 300 jobs are expected to be lost. It said that it does not agree with the numbers to be axed and said that it will be keeping its members informed of developments. It also said that it had entered into discussions with the goernment in an effort to mitigate the impact on employees.
Government to find alternative job opportunities for workers affected
The Ministry for the Economy, Investment and Small Business was pleased with the news that De La Rue plc expanding was their operations in Malta, with the relocation of its current Security Products Capability from the UK, as well as a further €21 million investment in the creation of a centre for excellence for Identity and Security Products in Malta.
"This is the result of discussions with the Government and Malta Enterprise to secure a €21 million investment that will ensure the sustainability of a large number of jobs in the growing Identity and Security Products business".
"As it did in similar cases, the government is committed to finding an alternative job opportunity to all those employees who through this restructuring will be adversely affected".
PN expresses worry for those hit by redundancy
The PN said it was worried about the fact that a number of workers in Malta will be made redundant, despite the fact that the company is expanding operations in Malta.
The news, said the PN, also puts pressure on the government to find new jobs for those workers who will be made redundant.
The PN expressed solidarity with the company’s employees and reminded that for every worker affected, a family also suffers. It urged the government to find a solution for those employees who will be hit by redundancy.