Hampshire & Isle of Wight

Banknote printer De La Rue suspends some production

The world's largest banknote printer has been forced to suspend some production at its factory in Hampshire.

De La Rue, which prints notes for the Bank of England and 150 other countries, said paper quality specifications had not been met.

It suspended some production and shipment from the Overton plant due to an "issue" with the paper it produces.

The firm, which also supplies security documents such as passports and fiscal stamps, has started an investigation.

Fall in shares

It added production was still continuing and it had only stopped paper which had been affected by the issue, but declined to go into further detail.

"It is apparent that some paper production has failed to meet certain quality specifications," a spokesperson said.

"As a consequence the production and shipment of this specification paper has been suspended whilst the circumstances are fully investigated.

"Subject to the outcome of that process, and clarification of the company's contractual position, it is now expected that paper production and sales in 2010/11 will be materially lower than originally planned."

Shares fell to a three-year low on Tuesday as the company warned that its paper revenues were likely to be "materially lower" than expected.

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