Scott Technology spins off automation company

Friday 17th August 2001

By Campbell McIlroy

In the face of falling capital expenditure from appliance manufacturers in the US and South America Scott Technology has set up a new subsidiary.

Scott Automation will focus on applying the group's technology and automation experience to non-appliance industries.

In a new business direction for the Dunedin division of the company, Scott Automation will focus on developing automated solutions for basic industries including the smelter, timber, industrial manufacturing, food processing and primary industries.

Scott Technology chief executive Kevin Kilpatrick said the company wanted to recapture markets it used to be involved in as well as new markets.

He said the company had become focused on the sheet metal and appliance industries and had questioned the logic behind carrying out virtually the same operations on two sites.

The company's Christ-
church branch will continue to focus on the international appliance industry but the new Dunedin subsidiary will focus solely on the domestic market to start with.

The new company will be headed by Andrew Arnold as general manager and will have its own board of directors chaired by former Scott Technology managing director Graham Bates.

From a peak of 288c in 2000 Scott's share price has steadily declined, with the announcement having little effect on the share price which was unchanged in early trading yesterday at 140c.

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