Spirax-Sarco to reduce French manufacturing and invest in product development
Spirax-Sarco Engineering, a specialist in the control and use of steam and in peristaltic pumping, said today (8 January) that it was stepping up its investment in the business and improving operating efficiency.
However, the Cheltenham, Gloucester-based company also said in a trading update that it would be extending the cost reduction actions it announced early last year and reducing the manufacturing footprint at its French factory. The total cost of reducing headcount was now expected to be around £11 million and this would bring further efficiency gains in 2010. Spirax Sarco employs around 4,200 people worldwide.
Sales for 2009 increased 3% from 2008 and there had been benefits from lower material costs and the action to reduce operating costs. In 2010, the company said it planned to reinvest some of the cost savings in stepping up investment in product development and expanding market penetration.
Analysts' expect the company's pre-tax profit to be in the range £78 million to £85 million.
