Yule Catto closes Dutch division

YULE CATTO, the specialty chemicals group, is shutting a loss-making Dutch building materials subsidiary with the loss of 70 jobs, writes Neil Thapar.

The move has been prompted by recession in the Dutch construction industry, which led to a 'dramatic reduction in the number of potential projects' and intensified price cutting, Yule said.

As a result, it is closing Nijs en Vale, which manufactures architectural facades, after existing contracts are completed. It incurred an operating loss of about pounds 900,000 in the year to 31 December.

Yule Catto is making a pounds 3.7m provision against 1993 results. City analysts expect taxable profits of pounds 17m for the year, down from pounds 22.2m in 1992.

However, the shares rose 5p to 269p yesterday after the company said its chemicals business was performing strongly and some building products companies were showing early signs of recovery.