MoD contract award and outsourcing of UK dairy manufacturing
Avon announces the placement of a further contract by the UK MoD for the UK military's in-service respirator, the S10. The Company has now been the sole supplier of the S10 to UK forces for over two decades and the recently awarded contract demonstrates the MoD's continuing trust in Avon's product. The contract is worth £4.49 million but has the potential to exceed £10 million over three years. The masks will continue to be made at the Company's Hampton Park West manufacturing facility in Wiltshire, UK.
Peter Slabbert, CEO commented, 'This contract, together with Avon's supply of our new M50 gas mask to the US DoD, reinforces our position as the world leader in military respirators. We are grateful to the MoD for their support and continued confidence in Avon's product.'
In addition, to improve the performance of our UK based operations in these difficult economic times, the Company is proposing to outsource the manufacture of all dairy products currently made at Hampton Park West, Wiltshire, to a Czech Republic based supplier. Consultation with employees over this proposal and the redundancies that would result from it has commenced, with the transfer scheduled to be completed before the end of the 2009 calendar year. The costs of this transfer are expected to be recouped within two years.
Peter Slabbert said, 'Whilst the potential loss of jobs from the transfer of dairy manufacture is regrettable, the move not only secures the viability of our remaining UK operations but will enhance the future profitability of the Group.
Since our AGM statement in January, trading in the first half of FY 2009 has continued to improve in line with our expectations.'
Our half year interim statement is expected to be made on 21 May 2009.
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Peter Slabbert, CEO commented, 'This contract, together with Avon's supply of our new M50 gas mask to the US DoD, reinforces our position as the world leader in military respirators. We are grateful to the MoD for their support and continued confidence in Avon's product.'
In addition, to improve the performance of our UK based operations in these difficult economic times, the Company is proposing to outsource the manufacture of all dairy products currently made at Hampton Park West, Wiltshire, to a Czech Republic based supplier. Consultation with employees over this proposal and the redundancies that would result from it has commenced, with the transfer scheduled to be completed before the end of the 2009 calendar year. The costs of this transfer are expected to be recouped within two years.
Peter Slabbert said, 'Whilst the potential loss of jobs from the transfer of dairy manufacture is regrettable, the move not only secures the viability of our remaining UK operations but will enhance the future profitability of the Group.
Since our AGM statement in January, trading in the first half of FY 2009 has continued to improve in line with our expectations.'
Our half year interim statement is expected to be made on 21 May 2009.
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