De La Rue, the producer of banknotes for 150 different countries discovered sub-standard paper quality had been delivered to central banks and printers. The quality problem was discovered at its 600 worker plant located in Overton, Hampshire. Once the problem was discovered De La Rue closed the plant to allow for investigation into the issue.
“It is apparent that some paper production has failed to meet certain quality specifications,” a spokesperson said.
“As a consequence, the production and shipment of this specification paper has been suspended while the circumstances are fully investigated.”
De La Rue supplies security document papers such as banknotes, passports, authentication labels and fiscal stamps. It is unknown how long they have had the problem with the issued paper. When news of the problem hit investors the shares fell to a three year low.
De La Rue stated that once their investigation was complete they would make a further announcement. Analysts expressed there was a concern that this problem would damage the company’s reputation. The company warned its paper revenues are likely to be “materially lower” than proposed expectations.