Tuesday, 09 March 2010 13:17
Wheelie bin manufacturer Helesi has sold its British bin manufacturing operation to one of its distributors, Straight, and the two companies have entered a further licensing and distribution agreement.
Helesi made two-wheeled bins at a site in Bradford, but production was ceased temporarily – and not restarted – last year as new capacity came on line in Greece and Southern Italy. The Rotherham site remained as an assembly and distribution centre for the UK and Irish markets.
Now Straight has bought the moulding machines and tooling and will place them at one of its existing outsourced moulders. The bins will be made under licence from Helesi with joint branding. As such they will become Straight`s first proprietary wheeled bin, despite the company holding 10 - 15 per cent of the British wheeled bin market. Straight says that over time this move should enable it to generate margins on wheeled bins more in line with those which it generates on its core proprietary container range and that the addition of this proprietary wheeled bin range will strengthen its position in its core markets.
Also part of the agreement with Helesi is for Straight to become exclusive UK and Irish distributor and licensee for other Helesi products including plastic four-wheeled bins. Straight will also have the right of first refusal to import and distribute any new products developed by Helesi.
The sale is worth £1·65 million which Helesi will use to reduce debt. In 2008 Helsi`s UK business generated £6·5 million of revenues with a pre-tax loss of £1·38 million.
Source : http://www.britishplastics.co.uk/x/guideArchiveArticle.html?id=32830
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