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New customer contracts reflect positive finish to the year - Scott Technology

Fuseworks Media
Fuseworks Media

Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), is pleased to announce the award of two multi-million dollar customer contracts worth a combined ~$18 million, which leverage its expertise in the Materials Handling and the Appliance sectors. These build on the pipeline of new work awarded to Scott Technology in 2020 across a number of sectors, where it has specialist knowledge and experience.

Materials Handling Contract

Following on from the previously announced lamb automation system, Scott has been awarded a second large contract by Alliance Group in New Zealand, this one to design and build a carton handling, sortation and palletising system for Alliance’s Lorneville plant.

The system will increase product handling efficiencies by allowing more flexible, high speed carton sortation and management. This will be the first project of its type for Scott in New Zealand, and will utilise proven technology developed by Scott Europe and deployed with European based customers such as Nestle and Danone. Scott will also utilise technology provided by Savoye, the world’s leading high-speed carton storage and retrieval system organisation, following the recent signing of a global partnership agreement.

The Alliance project will be supplied from Scott’s facilities in Belgium and the Czech Republic, which are the company’s centres of excellence for materials handling technology and will be installed by the meat processing team in New Zealand.

Appliance Line Contract

Scott has been awarded a contract by Little Swan, one of the largest and most valuable brands in China, specialising in washing machines. Scott will be building an appliance line for Little Swan for the production of washer cabinets. The system will be built at the Scott China facility in Qingdao, with support from the New Zealand based appliances design team, with final commissioning expected in July 2021.

Scott CEO, John Kippenberger, said: "These latest contract wins signal a solid finish to the year for Scott Technology and reflects the execution of our new strategy and our focus on key areas of expertise.

"The Alliance project is an exciting opportunity as it aligns our recent materials handling acquisitions (Alvey) with our long term strategy to provide back-end automation solutions into meat processing companies globally. The addition of the Savoye storage and retrieval technology integrates seamlessly with our own Scott conveying, sorting and palletising applications and takes us to a new position of being able to offer a true end-to-end solution for global companies in sectors such as food production and e-commerce."

In regards to the appliances contract, John commented: "China is an emerging market for us, with significant opportunity to build on the appliances work we have been doing for the likes of Bosch, GE and Candy Haier. There is increasing demand for appliance automation in China, being driven by investment in new manufacturing capacity by companies looking to meet the strong global consumer demand in white goods. It is also supported by Government promotion, increasing labour costs and the impact of COVID-19 on manufacturing sites.

"Our growth in China will be supported by our move to a large, purpose-built manufacturing site in 2021. This will be integral in supporting our future growth ambitions for our China appliance business, as well as being well positioned to supply our future European demand.

"We remain focused on delivering smart automation and robotic solutions for businesses around the world wanting to make their organisations safer, more productive and more efficient."

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