Avon has more problems with M50 respirator deliveries

ERJ staff report (DS)

Melksham, UK -- Avon rubber said it has commenced deliveries of its M50 respirator to the US government for military use. However, it added that it has experienced continuing start up production issues. These will lead to reduced deliveries of the respirator in this financial year, and thus productions costs will be higher than forecast.

Avon said it has resolved these problems in the production of the complex respirator masks. It added that the US Department of Defense has exercised a requirements option under the Avon contract which allows them to order total quantities of up to 300,000 mask systems per year for a period of up to 10 years. Avon said, "Orders of $17m are expected to be placed under this contract for delivery next year in addition to the $22m already on order."

Avon said Net debt increased to £18.3m (Euro 23.3 million) at 30 June 2008 (31 March 2008: £13.5m) due to costs associated with the closure of the mixing plant and a further increase in working capital associated with the DoD contract.

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Press release from Avon