(Adds background, detail)
LONDON, Dec 2 (Reuters) - Banknote printer De La Rue plans to reduce its paper production as part ofcost-saving plans over the next few years to bring productioninto line with falling demand for paper banknotes, it said onWednesday.
The company, which prints over 150 national currencies aswell as UK passports, said it would reduce its production linesto four from eight and its print capacity to 6 billion banknotesa year, down from 8 billion.
De La Rue has struggled to maintain its sector dominance inthe face of continuing price pressure from competitors in recentyears, leading to a number of profit warnings.
The measures, which include closing banknoteproduction in Malta, would help the group to make savings inexcess of 13 million pounds ($19.6 million) a year from 2018/19,in addition to the group's existing cost-saving initiatives, itsaid in a statement.
Last week the company said it would launch a "root andbranch" review of its cash-sorting machines business afterfirst-half profits fell by more than a third. ($1 = 0.6637 pounds)
(Reporting by Li-mei Hoang; Editing by David Goodman)