Production operations at Corona (CA) and Wheeling (IL) to be transferred to new location near Chicago
The Board of Management of technotrans AG has resolved to combine the operations of the two existing production locations at a new site near Chicago. Both companies, acquired in 2000 and 2001 respectively, have helped to strengthen and consolidated technotrans' position in this important market. Between them, they generated revenue of more than € 27 million in 2005, equivalent to around 20 percent of consolidated revenue. Following last year's merger of the two companies into a single entity, this step is now being taken with the objective of optimising internal structures while at the same time improving capacity utilisation.
"In view of the sharp growth in business in this important market and the high order backlog, we are convinced that our subsidiary in the US will continue to make an important contribution towards our overall success. The new structure ensures that the local market requirements will be met optimally, and at the same time opens up considerable potential for savings," explained Heinz Harling, Chairman of the Board of Management of technotrans AG.
The reorganisation is scheduled for completion by around the end of the third quarter of 2006. As matters stand, the overall positive business progress of the group should compensate for the added costs incurred temporarily by this measure. The Board of Management consequently stands by its overall targets for the 2006 financial year (revenue of more than € 140 million and a net profit for the year of € 8.5 to 9 million). Download the Press Release.
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