Wednesday 31st May 2023
|Text too small?|
Auckland, New Zealand: Scott Technology (NZX: SCT ) has continued its momentum in the third quarter, following its strong H1 FY23 results. The company continues to build a solid pipeline of new contracts as global demand for automation continues to accelerate in response to labour challenges.
Scott Technology CEO, John Kippenberger, says: “We’re pleased to offer our customers worldwide, solutions to aid the ongoing shortages in the labour market, through our smart, repeatable automated technologies. The Scott team continues to build and nurture relationships within our core sectors of materials handling, meat processing and mining, and we are seeing this pay off in continued positive trading across the business.”.
New contract wins
Scott has secured its first contract to supply an automated modular mining solution to Mineral Resources Limited. The solution, which is valued at $12m, will process up to 1200 samples a day, maximizing uptime while maintaining accuracy and quality. The deal signals the commercial launch of Scott’s modular mining product offering which was prototyped earlier in FY23. In line with the Scott 2025 strategy, this approach will enable Scott to deliver competitively priced solutions to the market, without the risks and margin erosion associated with the legacy end-to-end automated laboratory systems.
The European team has also been busy securing several new materials handling contracts, including a $3.2m solution for A-ware Food Group and a $1.5m contract with Colruyt. In addition, Scott is delighted to be working with new dairy customer Incom Leone to deliver a multiline palletising system valued at $7m. The system will link several production lines to a palletiser with an output capacity of up to 30 pallets per hour.
Momentum in the appliance business continues with a further contract signed with long-standing customer Midea for $6.5m. This is the third significant contract signed with the Midea Group this year alone, with a combined total of $23m.
The upgrades arm of the appliance business remains a reliable source of high value, high margin contracts, reflecting strong customer confidence in Scott solutions and alignment with the Scott 2025 strategic pillar of authentic customer partnerships.
Project and product updates
The strategically significant materials handling project for Alliance Lorneville is moving positively through the final stages of commissioning and set to be completed mid-July. Once complete, the world class carton handling, sortation and palletising system, featuring Savoye technology, will be a showcase reference site for the Southern Hemisphere.
Phase one of the Scott automated poultry trussing rollout for CostCo is progressing well with phase two proceeding in parallel. Following exposure at the International Production & Processing Expo in Atlanta earlier in the year, interest in the poultry trussing technology from the US market has been exceptional. A fit for purpose manufacturing centre is being set up in Christchurch to increase manufacturing capacity to meet demand.
“The team is focused on continuing on our positive trajectory and delivering strong results for the remainder of FY23,” adds Kippenberger.
No comments yet
GEO - North Ridge Partners Appointed as Financial Advisor
December 7th Morning Report
New Zealand Government Bonds - through the pandemic and beyond
DOW - Refinance of Syndicated Sustainability Linked Loan facility
OCA - Appointment of Chief People Officer
CHI - Director changes at Channel Infrastructure
December 6th Morning Report
December 5th Morning Report
TWR - Tower announces strategic review
PFI - 11 Sheffield Street, Blenheim Divestment