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News

8 October 2007

 

STS centralizing European operation in UK

Plasma etch and deposition equipment supplier Surface Technology Systems plc (STS) says that it intends close its local office in Ulm, Germany. The customer service function will now be coordinated through the firm’s headquarters in Newport, Wales, UK.

“Our customers remain our top priority,” stresses CEO John Saunders. “We have decided to centralize our European operation to ensure a more rapid direct response to customers.  The decision will also provide customers access to the entire Customer Support organization’s resource,” he adds. “Centralising the support offered in Europe gives STS three strategic locations for spare parts and service – Taiwan, USA and the UK. Not only will our customers benefit from this decision, but our agents that play an important role in STS will see the benefits throughout the world.”

“It has become clear that, to improve the overall business efficiency, we had to centralize our spare parts and service functions,” Saunders continues. “By concentrating our efforts on three locations, we hope to put STS in a more competitive position worldwide.” 

On 27 September, non-executive chairman Nigel Randall stated that STS' financial results for first-half 2007 had been disappointing. Order intake was below expectations, despite a significant recovery in June. Also, the weakness of the US dollar contributed to the poor results.

Iin late August, Japan’s Sumitomo Precision Products Co Ltd (SPP), which currently owns 63% of the firm’s shares, made an offer to buy out the other shareholders.

SPP was previously sole owner from its acquisition of STS in March 1995 until the firm was floated on the London Stock Exchange at the end of 2000. SPP now aims to cancel trading of the shares on the LSE and re-register STS as a private company. 

STS’ independent directors decided unanimously to accept SPP’s offer and recommended shareholders to also accept. The acquisition process is now being implemented. “The SPP directors believe there are considerable benefits to STS, such as enhanced critical mass and financial resources, in it being developed and funded as a wholly owned subsidiary and privately traded business,” said SPP’s executive VP Hisao Shiotani.

See related items:

Sumitomo aiming to buy back control of STS

STS plans cost-cutting strategy to counter anticipated profit shortfall

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Visit: www.stsystems.com