Devro to invest £40m in US site to cut costs

Sausage skin maker Devro is to spend £40 million on expanding its manufacturing site in South Carolina in a bid to save about £8m a year.

The Moodiesburn-based firm also said it continued to mull an investment in Chinese operations.

Although sales volumes remained unchanged compared with a year ago, Devro said price rises ushered in during the first half have helped lift revenues since the start of July.

However, the firm said its full-year profits are expected to come in towards the lower end of market expectations because of “weakness in some developed markets”.

Devro, headed by chief executive Peter Page, also said next year’s profits will take a £3m hit from currency effects.