A significant factor in the group's future plans is the announcement of the closure of its manufacturing subsidiary in Poland (FMT). Since its inception in November 2010, FMT has not met the anticipated level of output and has presented operational challenges as a result of escalating costs in the material supply chain and employment. As a result, FMT has incurred significant trading losses and absorbed working capital from group resources.
Following the appointment of Nigel Rogers as chief executive in March 2012, the group board conducted a strategic review of the operations of MTUK (Machine Tools UK) and concluded that it is unlikely that the required improvements in the operational performance of FMT can be achieved within an acceptable timescale.
He commented: “The strategic review has clearly identified areas where we need to rationalise our operations and reduce costs in order to improve the performance of the group. This will protect the brand heritage and maintain the reputation that the group has for quality and reliability.
“We have listened carefully to the considered views of our key distributors across Europe over the last few weeks and customer demand remains strong. Our priority now is to improve leadtimes and delivery performance so as to drive increased revenues.”
600 UK's managing director Mike Berry advised: “MTUK will, from our UK factories, continue to manufacture, develop and expand the Tornado CNC lathe range as well as workholding equipment, bearings and machine spares together with all engineering and sales support functions.
“We have, for many years, enjoyed longstanding relationships with companies supplying conventional and CNC/manual Alpha lathes to Colchester and Harrison exacting specifications and quality requirements. These relationships will be further extended.
“We have taken the necessary steps now to provide enhanced supply to our customers in the future and we are committed to doing this. We are confident that this will lead to significant improvements in the service offered to our key distribution partners and customers across Europe and optimise the use of group resources,” he concluded.
Photo caption: Nigel Rogers The 600 Group
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