Production hiccup for Carclo

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Technical plastics firm Carclo reported another delay to volume production of its touchscreen sensors yesterday.

The latest setback is due to manufacturing requirements, but is not seen as a major obstacle to production.

Analyst Janardan Menon, at Liberum Capital, said: “We believe the hiccup came at one of the Asian laminators being used for the touch module assembly. The problem has now been resolved and production is expected to ramp immediately after Chinese New Year to Asustek, which is believed to be the customer.”

He added that while this won’t affect the outlook for sensors next year, it does imply that shipments this year will be below expectations. The setback has also delayed a £6.4m pre-payment.

Ossett-based Carclo said it has seen a better second half trading performance. In Technical Plastics, demand weakened in December and was slow to recover in January.

However, schedules have returned to normal and the group said February has started well.