STADIUM Plastics anticipates that the launch of the new Mini in 2001 will boost the sales of its plastics division.

The Hartlepool-based engineering group, which specialises in plastics and electronics, has already signed contracts to manufacture parts for the new Mini, which should result in a 15 per cent increase in sales.

The company made the announcement as it recorded pre-tax profits of £2.5m for the six months to June 30, down 18 per cent from the £3.3m recorded in the same period of last year.

In April the group purchased the Arlec Power Group, a Far Eastern electronics manufacturer, from Avatar Industries of Australia for £4.1m. The company has been renamed Stadium Asia.

Stadium Asia has a manufacturing facility in China, a head office in Hong Kong, and sales and design offices in the UK and France.

It is involved in the design, manufacture and distribution of power supplies, transformers and battery chargers.

It has major blue chip customers in the European telecommunications and consumer products markets. Turnover at the group rose by 7.5 per cent to £48.2m helped by £3.9m from Stadium Asia.

Stadium chairman Struan Wiley said: "Given the continuing uncertainty in our markets, particularly automotive, the group's strategy continues to be to maximise efficiency and factory output from existing operations.

"The plastics division has a strong order position, helped by the launch of the new Nissan Almera in February."

He added: "Development continues in preparation for the launch of the new Mini in the latter part of 2001.

"We have three major contracts on the Mini, which at forecast volumes, should result in a 15 per cent increase in sales of the plastics division."

Stadium employs 700 in Hartlepool, 120 on Tyneside and a further 20 in Chilton, County Durham.