SE Labels parent group, Rieber & Son, has decided to sell off the labels division and concentrate on its core business, food.



"The decision to divest has been taken over a period of time by the group management," said SE Labels managing director Ken Forster.


"They have made it very clear that shareholder value and employee protection are of primary importance given the size of the group," he added.


Rieber & Son said its profits had not reflected its "considerable growth" in turnover in the past few years, and that share price had been "well below" the desired level.


"The resulting release of capital will give the group the financial freedom of action needed to meet challenges and exploit opportunities in the foods area in the Nordic region," it added.
Rieber & Son will also divest its roads business.


The Norwegian group owns 87% of SE Labels, which has 11 sites in the UK and on the continent. Forster said market conditions were tough at present, but SE Labels restructuring, which involves the closure of its Park Royal, London site (PrintWeek, 12 May), would enable it to retain its position as Europes number one self-adhesive labels producer.


Forster said that very few of the London-based staff had taken up SEs offer of jobs at its main Gateshead plant.


Story by Gordon Carson.