© Note Electronics Production | May 14, 2020
Note reopens plant in Windsor – Q2 showed strong development
At the end of March, the EMS provider suspended production at its plant in Windsor, UK, following the British authorities' decision to limit all unnecessary travel and industrial operations. Now, things are moving forward.
The Swedish EMS provider’s plant in Windsor accounts for about 10% of the group’s total sales. The closure is subject to the UK authorities' support measures, which include, among other things, full compensation for the salary cost of laid-off staff. Moving forward, and based on instructions from the local authorities, Note is taking the necessary steps to reopen the plant for production. Capacity utilisation at the Windsor plant is expected to increase gradually during May and June, a press release reads. As previously announced, the temporary suspension of production at the Windsor plant is expected to result in a production loss in Q2 of approximately SEK 20 million (EUR 1.88 million). The EMS provider says that its operations continue to develop very strongly and all plants in Europe and China are now operational. Demand in the second quarter remains high, both from customers in the medtech area and other segments. Note says in the press release that the availability of electronic components is still relatively good. Given the strong order situation, with many new projects in the upturn phase, the company believes there are good conditions that sales in the second quarter will amount to about SEK 500 million (EUR 47 million), which corresponds to growth exceeding 10%. Both operating profit and operating margin are also expected to strengthen during the second quarter. “NOTE has recently gained a lot of customers' trust and last year achieved organic growth of about 15%. During the first four months of the year, growth was 17%, which is clearly above our sales target. We still have many customers in the growth phase, which contributes to our strong growth and earnings development during the first half of the year,” says Johannes Lind-Widestam, President and CEO, in the press release.
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