Strong Exports Boost Devro's Sales

Scottish sausage-skin maker Devro has announced good second-half sales on the back of strong exports

The Lanarkshire-based company, the world’s leading manufacturer of collagen products for the food industry, said in its interim management statement in respect of the period from 1 July 2011 to date that the group is on course to meet Board expectations for the current year.

Sales volumes have shown strong growth compared to the corresponding period last year. The momentum seen in Quarter 2 has continued, helped by growth in Western Europe, Eastern Europe and Russia and with the new premium Select range, in particular, making encouraging progress in Japan.

Latin America and South East Asia have also shown good growth, with volumes in the UK and Australia declining slightly.

The statement says: "Whilst the market is very competitive in light of the wide range of pressures impacting food manufacturers, we have benefited from recent work on pricing.

"As previously reported, the 2011 capital investment programme involves expenditure of approximately £45 million, with plant upgrades under way in Scotland, Czech Republic, Australia and the US.

"These projects remain on track to both enhance production efficiencies, and provide additional capacity through to 2013. The new co-generation plant in Australia will be commissioned by the end of the year, and the savings generated will partially offset the expected energy cost increases across the group in 2012."

Devro employs around 480 workers in its manufacturing plants in Bellshill and Moodiesburn, near Glasgow.

It manufactures collagen, a common form of protein that is transformed into edible casings, for supply to the food industry, which uses the product for sausages, salami, hams and other cooked meats.

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