Cencorp Oyj Stock Exchange Release 19 April 2012 at 10.15 Finnish time
CENCORP’S NEW STRATEGY PUBLISHED – OUTLOOK FOR 2012 STAYS UNCHANGED
Cencorp’s Board of Directors has decided on company’s new strategy. The company’s strategy bases on extensive knowledge of automated handling of small pieces and on long experience on customers’ automation needs, systems and equipment. Today Cencorp has good theoretical knowledge also of laser and its applications for machining plastics as well as of vacuum coatings.
Company’s main business operations consist of:
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The development of clean technology applications in cooperation with the customers. The ongoing application development today involves renewable energy, fuel cells and LED-technology.
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Life cycle management of laser and automation systems and equipment. Special attention will be given for customer service through improving and strengthening maintenance operations and other after sales activities. Cencorp has delivered more than 2 000 automation installations to the leading electronics manufactures especially in North America and Central Europe. Existing good customer relations create a solid base for the new strategy.
The main development focus will be especially on software that relates to laser and automation applications and equipment. The software will create the customer added value, for example through integration into customers’ materials management and maintenance IT-systems. This kind of software systems have already been delivered to some key customers.
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A separate profit centre will be formed to sell stand alone equipment. That business unit will cooperate closely with the independent manufacturing partners. Close and mutual product development between Cencorp and its development and manufacturing partners will be increased. Long-term commitment with the partners may be further deepened with minority shareholding arrangements.
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Reel-to-reel manufacturing of flexible circuits in Beijing, China, is an important part of the Special Components segment. Flexible circuits comprehend for example RFID (Radio Frequency Identification) and mobile phone antennas including so called NFC (Near Field Communication) antennas and LED lights related products. Development is focused especially on products and services that require laser technology in downstream operations of flexible circuits. The components for the renewable energy application project, that was earlier published, are manufactured also in Beijing.
- Metallization of electronic equipment components by vacuum coating in China will remain in an essential role in the Special Component segment. This so-called electromagnetic shielding (EMI-shielding, EMC-shielding) isolates radiating components from interfering with each other and prevents external radiation from affecting equipment functionalities.
”With the new strategy Cencorp will be turned towards profitable growth as soon as possible. The new strategy will be taken into use immediately. We have done systematic work for changing the company’s strategy and improving profitability already for some time. Now hard work continues in concrete actions ” Says Iikka Savisalo, who started as Cencorp’s Managing Director 3 April 2012.
According to the new strategy Decoration Operations located in Guangzhou China are no longer part of Cencorp’s core business. The decoration factory in Guangzhou serves industrial and consumer electronics industry by manufacturing decoration applications for plastics or metal using vacuum coating and other technologies. Decoration technologies create desired decoration, appearance or feeling on metal or plastic surfaces. Cencorp’s decoration business was unprofitable in 2011, but its’ operational precondititions seem to be improving with the new customer base. However, further development of the decoration operations requires investments. To be able to focus on its core business the company has started negotiations to find a strategic partner in the decoration operations. Alternatively Cencorp investigates different options to exit from the decoration business.
In the Special Components segment (the current operations in China) the company is aiming for growth with strategic customer partnerships, especially in manufacturing of flexible circuits, fuel cells and components for renewable energy technologies. The company sets a strong focus in this segment on winning new customers and establishing its technologies in new customer industries.
The company’s target is together with its subcontracting partners to concentrate its research and development investments in bringing new innovations and products into market better and faster than earlier. Additionally Cencorp aims to grow with strategic partnerships and arrangements related to product design and manufacturing.
Cencorp keeps the outlook for 2012 as it was. Despite of the uncertain economic environment Cencorp estimates its net sales to increase compared to 2011 and the full-year EBITDA is estimated to be positive provided that no essential change takes place in the operating environment or in the current economic outlook.
Cencorp’s Annual General Meeting will be held today, 19 April 2012. The company publishes its Interim Report for 1 January – 31 March 8 May 2012.
Mikkeli, 19 April 2012
CENCORP OYJ
BOARD OF DIRECTORS
For more information:
Iikka Savisalo, CEO, tel. +358 40 5216082, iikka.savisalo@cencorp.com
Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com
Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of customers production. The product range also
includes EMI shielding solutions, flexible circuits, decorations and RFID
antennas. Cencorps customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorps head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.