Business
Intention to outsource manufa
Intention to outsource manufa.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n RNS Number : 9026M Sarantel Group PLC 02 June 2010 \n \n\n2 June 2010 \n \nSarantel Group PLC\n \nIntention to outsource manufacturing\n \nSarantel Group PLC, (AIM: SLG, \"Sarantel\"), a leading manufacturer of high-performance, miniature antennas for mobile and wireless devices, announces that on 1 June 2010, the Group signed a Letter of Intent with Elcoteq SE to outsource its assembly, test and supply chain processes. \n \nThe initiative is expected to generate annual production savings of approximately £0.5m and the transfer of these processes and associated equipment should be completed by the end of 2010, with little or no disruption to supplies. The exceptional costs arising on the consequent restructuring are approximately £50,000. \n \nOutsourcing allows the Group to focus more effectively on its uniquely valuable production processes and increase resources for product development. At the same time, it will simplify day-to-day operations by reducing the number of direct suppliers to the Group's remaining operations, which will be consolidated from two sites into one. \n \nSarantel will also benefit from Elcoteq's sourcing capabilities to reduce BOM (bill-of-material) costs and from its design-for-manufacturing experience, which will optimise and reduce the cost of the assembly process itself. \n \nDavid Wither, Chief Executive, commented:\n \n\"This is an important development that will significantly reduce our costs and simplify our business so we can focus on developing the next generation of innovative antennas for consumer and high-value markets.\" \n \nSeparately today, Sarantel has announced interim results for the six months to 31 March 2010.\n \n \nEnquiries\n \n\n\n\n\nSarantel Group PLC\n\n\n01933 670 560\n\n\n\n\nDavid Wither, Chief Executive\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSeymour Pierce\n\n\n020 7107 8000\n\n\n\n\nJohn Cowie, Nicola Marrin\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCollege Hill \n\n\n020 7457 2020\n\n\n\n\nCarl Franklin/Adrian Duffield \n\n\n\n\n\n\n\n \nAbout Sarantel www.sarantel.com\n \nSarantel is a leader in the design of high-performance miniature antennas for portable wireless applications. Sarantel's revolutionary ceramic filtering antennas offer dramatically improved performance over exist...