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Raymarine to outsource with Flextronics
Raymarine to outsource with Flextronics
By Malcolm Locke and John Duckers
619 words
16 August 2005
Birmingham Post
24
English
(c) 2005 Birmingham Post & Mail Ltd
Britain lost another major piece of its manufacturing base yesterday as Raymarine, the marine electronics company, confirmed it would move work to Hungary.
It has agreed an outsourcing deal with US-based Flextronics International in a move that will result in the closure of its factory in Portsmouth and the loss of 250 jobs.
Raymarine is well-known to the vast majority of boating enthusiasts.
The group makes gadgets such as fish finders, navigation systems, radar consoles, autopilots and global positioning systems.
The outsourcing move was originally flagged back in July, but the name of the manufacturing partner and new location were not disclosed.
Raymarine"s affected employees have been fully consulted about the move, but group chief executive Malcolm Miller said staff were "obviously upset".
"It"s been a tough decision to take, but I think staff understand why we"ve had to do it," he said.
"Flextronics is an important tier one supplier of electronics and Raymarine will be able to plug in to its expertise and get the benefit of its global purchasing power. The outsourcing of our UK manufacturing operations is essential for Raymarine to remain competitive. It"s not just about cutting jobs and the wages bill."
The group said the outsourcing move would save it £5 million in 2007; £10 million in2008; £10.5 million in 2009; and £11 million from 2010 onwards. The cost of implementing the move will be £15 million this year and a further £6 million in 2006. About a third of the costs will be redundancy charges.
Raymarine to outsource with Flextronics
By Malcolm Locke and John Duckers
619 words
16 August 2005
Birmingham Post
24
English
(c) 2005 Birmingham Post & Mail Ltd
Britain lost another major piece of its manufacturing base yesterday as Raymarine, the marine electronics company, confirmed it would move work to Hungary.
It has agreed an outsourcing deal with US-based Flextronics International in a move that will result in the closure of its factory in Portsmouth and the loss of 250 jobs.
Raymarine is well-known to the vast majority of boating enthusiasts.
The group makes gadgets such as fish finders, navigation systems, radar consoles, autopilots and global positioning systems.
The outsourcing move was originally flagged back in July, but the name of the manufacturing partner and new location were not disclosed.
Raymarine"s affected employees have been fully consulted about the move, but group chief executive Malcolm Miller said staff were "obviously upset".
"It"s been a tough decision to take, but I think staff understand why we"ve had to do it," he said.
"Flextronics is an important tier one supplier of electronics and Raymarine will be able to plug in to its expertise and get the benefit of its global purchasing power. The outsourcing of our UK manufacturing operations is essential for Raymarine to remain competitive. It"s not just about cutting jobs and the wages bill."
The group said the outsourcing move would save it £5 million in 2007; £10 million in2008; £10.5 million in 2009; and £11 million from 2010 onwards. The cost of implementing the move will be £15 million this year and a further £6 million in 2006. About a third of the costs will be redundancy charges.
