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De La Rue CEO Resigns

The chief executive of banknote printer De La Rue, James Hussey, has quit. The news comes amidst production problems, which will affect sales in 2010 and 2011. De La Rue recently halted production at a paper factory for failing to meet quality standards.
 De La Rue makes banknote paper for more than 150 countr..
 
 

The chief executive of banknote printer De La Rue, James Hussey, has quit.

The news comes amidst production problems, which will affect sales in 2010 and 2011.

De La Rue recently halted production at a paper factory for failing to meet quality standards.

It has yet to name a replacement for Hussey, but Nicholas Brookes, the non-executive chairman, has been appointed executive chairman on a temporary basis.

The paper factory in question is located in the UK. Production at the facility was suspended on 21 July.

De La Rue said in a statement that Mr Hussey believed "he must take responsibility" for the production problems.

“The company continues to look into these irregularities in one of its paper production facilities, which the board considers to be of a serious nature,” the statement reads. “A further announcement will be made as soon as the Board has been able to assess the financial and operational implications on the current financial year's results and on the Group's prospects but, owing to the complexity of the issues, this is unlikely to be in the near future.”

De La Rue prints notes for the Bank of England and 150 other countries.

The company said it was “confident” that the production problems at the paper factory in question did not involve any issue with either the psychical security of the facility, or that of the paper produced.

“De La Rue is confident that neither the physical security nor the security features incorporated in the paper have been compromised for any customer and that the irregularities referred to above relate only to testing of paper specifications at the relevant facility. All the other activities of the Group, including currency printing, remain unaffected by these irregularities,” the statement said.

SOURCE: De La Rue company statement

Edited by Ellie Duncan

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