UPDATE 1-Henry Bath asks LME to delist 21 warehouses worldwide
LONDON, June 27 (Reuters) - Henry Bath has asked the London Metal Exchange (LME) to delist about of fifth of its warehouses worldwide as it slims down its network, according to sources in the sector.
Henry Bath, owned by U.S. bank JP Morgan and headquartered in the UK port city of Liverpool, declined to comment.
The warehousing company, founded in 1794, asked the LME to delist 21 warehouses - one in South Korea, two in Singapore, six in the Netherlands, two in Spain, three in Britain and seven in the United States.
Henry Bath had 96 registered LME warehouses as of June 19, according to data on the LME website.
One warehousing source said the facilities were being delisted because they were surplus to requirements.
"This will be a common feature in the future... everything is just being centralised," another warehousing source said. Both sources declined to be named.
Recently, expansion in the warehousing sector has been dominated by trade houses such as Glencore Xstrata, which owns warehousing firm Pacorini, and Trafigura, which controls North European Marine Services (NEMS).
Many banks, on the other hand, are under pressure to reduce risk on their balance following the 2008 financial crisis, withdraw from proprietary trading in assets such as commodities, and run assets like warehouses at arms length.
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