Shares in De La Rue (DLAR) rose 4 per cent after management outlined the results of its manufacturing review, which will cost £30m in capital expenditure. The currency manufacturer plans to reduce its banknote printing capacity by 2bn to 6bn a year, which management thinks will generate £13m in savings from FY2018-19. To do this the group will replace and modernise its banknote printing equipment, reducing its production lines by half to four.
De La Rue - which already produces passports - will concentrate on growing its market share in identity and security products. A significant portion of the £30m investment will be used to buy equipment and skills to create a centre for excellence for security and identity products at the group's existing site in Malta.