Carr’s Milling has switched to the recovery stage
05 August 20132 min reading
UK-based Carr’s Milling Industries has switched to the recovery stage after the bad harvest in 2012 and closure of another mill.
Having rough times because of over capacity and volatile pricing in recent years, one of the leading companies of British milling industries Carr’s Milling Industries is rising again. It is stated that the closures of the competitors and the dependence on foreign wheat will help Carr’s Milling Industries to rise again.
The company officials said that the flour milling industry has been drowning by the overcapacity and the fluctuation in prices in the recent years.
However according to the news of British media organs a poor wheat harvest in UK in 2012 has meant a greater need for imported grains which has helped Carr’s, given the dockside location of its mills at Kirkcaldy, Fife, and Silloth, Cumbria.
Another low volume harvest across 2013 is expected, meaning further reliance on overseas wheat. The Scottish operation had also benefited from the closure of a Hovis mill on Dunaskin Street in Glasgow earlier this year, which helped to ease capacity pressure.
A new £17 million flour mill, the first to be built in Scotland in more than three decades, remains on track to open in Kirkcaldy during September.
Carr’s said: “The planned significant efficiencies and improvements in operating margins [will come through next year].”
Analysts at Investec kept their predictions for this year unchanged, but added: “We still anticipate profit progress next year as the new mill drives flour milling returns back to more acceptable levels.”
Articles in News Category