THERE was good news for hundreds of East Lancashire workers today after the Scapa Group revealed record profits.

Scapa, the biggest public company in Lancashire with a head office in the county, saw operating profits leap by 21 per cent to £71 million and turnover increase by 20 per cent to £525.8 million.

The firm, which has its head office in Preston New Road, Blackburn, and plants in Blackburn, Haslingden and Rishton, employs 2,800 in the UK and 7,000 worldwide in 70 locations.

Chief executive David Dunn said the firm was fully committed to staying in Blackburn, where the company was founded in 1927 by Thomas Hindle.

"We've been here a long time and we are staying here."

He added that prospects for the company were good for the foreseeable future.

"Since records began paper production has increased every year and, on any forecast for the next 15 years, worldwide paper production will increase."

Scapa, which makes a wide range of products for the paper industry, is doing particularly well in the emerging Pacific Rim countries where demand for paper is very strong.

The group is also set to buy a company in Oregon called Mill Tek for seven million dollars in the next two weeks to strengthen its American operation and add to the £52 million it spent on new acquisitions last year.

Mr Dunn added that 1995-96 had proved to be a year of considerable progress for Scapa Group. "Every division improved its financial performance relative to the previous year and a number of key developments were achieved in pursuit of our strategic plans."

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.