The crisis in Scotlands electronics industry is forcing Macfarlane Group to look at rationalising its packaging facilities.


Chief executive Iain Duffin (right, with chairman John Ward) said it was too early to say which operations would be affected, but talks were ongoing.


He hinted that the group could look at consolidating branches: Prior to the acquisition of National Packaging (PrintWeek, 12 April) it had reduced its number of branches from the high 20s down to 20 and National Packaging had gone from 40 to 17. Now we have almost 40 again, he said.


Macfarlane supplies packaging to Compaq, which is experiencing a slowdown in demand, and Motorola, which is closing its plant in Bathgate.


Most of the work we do for Compaq is in our West Coast of Scotland operations but we do a number of things for it and it will remain an important customer, said Duffin.


Compaq plans to switch some production to the Czech Republic and Duffin revealed that Macfarlane had also looked at setting up operations there.


An opportunity can come from these threats, he said. You can sit and lick your wounds or get off your feet and do something.


Macfarlane has already set a precedent to such an action by setting up a packaging operation in Hungary to do work for IBM after it moved production from the UK. Duffin said Macfarlane would also increase its presence there.


Duffin said Jarvis Porters decision to close its Hinckley plant (PrintWeek, 11 May) was another indication of the overcapacity in the market.


He would not reveal whether Macfarlane was interested in any of the packaging operations up for sale, such as Wyndehams or Polestars divisions, but admitted the group was still acquisitive and would look at buying the right things at the right price.


Story by Gordon Carson