THE sale of two East Lancashire businesses to a German firm has finally gone through - and sparked a major management reshuffle at Scapa Group.

The Blackburn-based firm has completed the sale of Scapa Scandia in the town and Scapa Forming, Stubbins, for £326 million to German firm Voith.

The new owner has said it will now begin a major review of how the two factories fit in with its existing operations and has said it could be up to two years before the review is complete. Voith's paper machine clothing division has sites in Germany, the US and China. Following the buy-out, Ivan Fearnheard, a board director of Scapa who has worked for the Scapa group for 30 years, will become the head of the newly-merged division. Voith is a 132-year-old family-owned paper machine business employing more than 12,000 people.

Scapa, which has its headquarters in Preston New Road, Blackburn, is selling the businesses because it says it wants to concentrate on its specialist tapes division. Following the sale chairman Harry Tuley has announced he will be retiring from his role as non-executive chairman. Mr Tuley, 65, became chairman in 1993 and had previously worked as chief executive and group managing director.

He will be replaced by David Dunn, currently chief executive, who becomes non-executive chairman.

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