International Greeting Plc has announced it is restructuring its UK business.

International Greetings Plc has announced rationalisation plans for its UK manufacturing facilities, due to the slowdown in consumer spending and a reduction in the sale of its Christmas goods.

The company, which manufactures gift wrap, ribbons, Christmas cards and crackers, has announced the restructuring process following the announcement of its interim results in mid-December 2007, which revealed below-market expectations.

In a statement, the company said: “It is now clear that the UK manufacturing facilities, together with those in Eastern Europe and China, cannot in their current form deliver acceptable profit margins. With immediate effect, these manufacturing units are being restructured which will lead to a rationalisation of the business, and in due course, certain fixed assets will be disposed of.”

With particular reference to its UK manufacturing division, the company cited manufacturing inefficiencies and reduced Christmas orders as among the reasons for the rationalisation.

Despite the overall slowdown in the market, International Greetings has indicated that its current selling season for Christmas 2008 is “encouraging”.

The company was founded in 1979 and operates globally, with bases in the US, the Far East and eastern Europe, however its main operations are in the UK. It has an annual turnover of £40 million, with profits of £2m (2005 figures), and estimates that on average, it produces 38m crackers and one billion feet of wrapping paper every year.