Jobs at risk as De La Rue announces plan to stop making banknotes in Gateshead

Banknote maker De La Rue has announced that it plans to stop making banknotes at its Gateshead factory by the end of this financial year and would enter consultation with affected staff.

About 250 people work at the site in Tyneside and the company has not specified how many will be affected by the change. Trade union Unite though has said it will be 255.

The firm added that some "core services and roles" will remain in Gateshead.

This news comes after a contract to print passports at the site was lost last year.

Equipment in Gateshead will be moved to other plants, reducing the number of De La Ru factories producing banknotes from five to four.

The stock market announcement said:

Unite regional officer Tom Usher said:

The company also stated that it expects demand to grow around the world for its "cleaner" plastic banknotes as governments try to slow the spread of coronavirus. The company's polymer notes are less likely to spread dirt than traditional paper money, according to its research.

It has set out a plan to raise £100m from shareholders.

Most of the money, around £80m, will go into the company's turnaround plan.

Around £15 million will be invested into polymer note production, which is based in the UK.

The company has drawn up a shortlist of potential sites for this.

De La Rue revealed that its profit before tax rose 42 per cent to £26.1m, on adjusted revenue of £426.7m, down more than 17 per cent.

In February, the firm announced it would be embarking on a turnaround plan to grow its currency arm, and the authentication business, which works to prevent fraud.

The news came a day after the Serious Fraud Office dropped a years-long investigation into De La Rue over fraud allegations in South Sudan.

Liz Twist, the Labour MP for Gateshead, described herself as "furious" with the news.

She said: