Trifast looks to Asia
1 min read
The precision fasteners and components manufacturer Trifast is looking towards its factories in Taiwan and Singapore to secure its future.
Announcing its results for the year to 31 march today (18 June)the company said its challenge was to keep pace with its expanding sub-contract manufacturers as they opened new factory facilities. “Sub-contractors are constantly in search of new low cost economies in which they can open new production facilities producing high volume consumer electronics. This challenge has become a prime focus for our own Asian factories and created a number of opportunities for Trifast,” said CEO Steve Auld.
Sales and marketing plans were being developed in Asia and the company said it was looking to take full advantage of its expertise and capabilities in Taiwan, where it has two factories, and in Singapore. “These three large manufacturing sites will be key to our future developments in this existing growth market,” it said.
Trifast said it was looking to strategically invest in this region to ensure that it remained at the cutting edge of fastener manufacture in Asia, allowing it to move into potential growth markets like aerospace and defence, vision and sound technology, medical and marine products.
It will also be looking at potential new territories, including Vietnam and India.
“The growth of our business in China is totally driven by internal demand. We do not export from China and we only produce fasteners for the local market,” the company said.
However, revenues for the year were down seven per cent to £122.36 million (£131.95m last time) while pre-tax profit was 10% up at £6 million (£5.4m).
Trifast said the main feature of the year has been an improvement in the quality of the Group's earnings, set against a reduction in sales resulting from customer site closures, planned exits from low margin business and natural attrition.
Commenting on the results, Auld said: "Thanks to the management initiatives we have adopted, we are now enjoying better operating returns as the quality of our business has improved, despite the challenges presented by the marketplace. As a result the operating profit (£9.95m) is at a seven year high."
