SCANFIL PLC STOCK EXCHANGE RELEASE 27 JUNE 2016 2.30 P.M.
SCANFIL TO RESTRUCTURE OPERATIONS IN CHINA
Scanfil announced in the Interim Report on 29 April 2016 that measures to eliminate overlap and streamline the factory network have been started in China. As an outcome of these measures Scanfil Sweden AB’s Chinese subsidiary, Partnertech Electronics Co., Ltd. has on 27 June 2016 decided to cease the production at Dongguang plant in China. Production at Dongguang plant is estimated to end during the third quarter of 2016. Turnover of Partnertech Electronics Co., Ltd in 2015 was about EUR 19.5 million and operating loss about EUR 1.1 million. Part of the customer accounts of Dongguang will continue at Scanfil plants in Hangzhou and Suzhou.
Non-recurring costs related to the closure of the production is estimated to be approximately EUR 2 million. The respective negative cash impact is estimated at approximately EUR 1 million. Corresponding cost provision will be recognized in the second quarter of 2016.
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Scanfil is an international contract manufacturer and system supplier for the electronics industry with 40 years of experience in demanding contract manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.
Typical Scanfil products include mobile and communications network devices, automation system modules, frequency converters, lift control systems, analysers, various slot and vending machines, and devices related to medical technology and meteorology. Scanfil services are used by numerous international automation, energy, IT and health service providers, as well as companies operating in the field of urbanisation. Scanfil’s network of factories consists of 13 production units in Europe, Asia and North America. The total number of employees is 3,800.