NOTE acquires business for growth in the UK
NOTE has been working hard for over two years to develop a unique business model - Nearsourcing. NOTE's business model aims to increase growth and profitability while reducing the risks in its operations. This model is based on volume production in cost-efficient countries, the introduction of the NOTEfied component database to support sourcing and development processes, and geographically close and cost-efficient development work that shortens customers' time-to-market.
In the autumn, NOTE increased production capacity in cost-efficient countries by establishing new jointly owned plants in China and Poland. This created the potential to significantly reduce costs in high-cost countries. As a consequence, NOTE laid off 124 employees in Sweden last week. Furthermore, the launch of the NOTEfied component database was received beyond expectations on the market.
NOTE's profitability has progressed strongly in recent years, mainly as a result of cost rationalisation. Now, NOTE's focus has shifted to increasing growth. Accordingly, the acquisition of the Proqual business is a natural step to increase sales.
''Proqual is a technically competent, flexible Electronics Manufacturing Services (EMS) provider in Gloucestershire, near Bristol. The business specialises in early product lifecycle services such as prototyping and advanced small batch electronics manufacturing. The turnover is 45 MSEK/year and the number of employees is 40. We will now add further expertise to the business and create our first Nearsourcing operation in the UK. Accordingly, the company's established customer base offers great potential for future growth on the UK market,' says Knut Pogost, Chief Strategic Officer of NOTE.
''After our new Board of Directors joined us in the spring, we intensified work on developing our unique business model. The acquisition we're making now is aimed at accelerating our growth, and is fully in line with our earlier establishment of the Nearsoucing operation NOTE Oslo. We expect the new operation in the UK to make a positive contribution to our margin growth already in the current year.
The trend towards increased outsourcing of electronics production is strong and considered to offer good growth opportunities. We are now increasing our offensive on new geographical markets as planned, which will contribute to further growth for NOTE in the long term," says Arne Forslund, CEO and President of NOTE.