After the shockwaves that went through the UK automotive moulding industry following the announcement that Clearplas UK (Bayton Road, Exhall, GB-Coventry CV7 9EL) were to close, parent company Suter PLC (St. Vincents, Grantham, GB-Lincs NG31 9EJ), has now found a buyer for its troubled injection moulding business. The major US injection moulding group Key Plastics Inc (39325 Plymouth Road, Livonia, Mich. 48150, USA) is to pay almost £ 9m for the business, marking its first move into the European automotive components market.

The problems that Clearplas UK have been experiencing are indicative of the fiercely competitive and demanding nature of being a components supplier to the automotive trade. According to Suter, it had invested heavily to improve efficiency and quality as well as meet the lower prices demanded by customers. However lower than expected orders resulted in the business not being viable for Suter.

Suter, an industrial conglomerate involved in refrigeration, specialist engineering and chemicals, also owns the French moulder Clearplas France (Z.I., route du Mans, F-61130 Bellême). This company is not involved in the sale to Key Plastics. It operates as a completely separate business which is much stronger than Clearplas UK. According to Chairman, David Abell, "Clearplas France enjoyed a satisfactory year. It has a wider customer base and has benefited from greater management stability than the UK business". The automotive division, which includes the Clearplas operations, had a 1995 turnover of £ 87.8m with a trading profit of £ 3.8m (down from £ 6.2m in 1994).