Scott signs two contracts worth $18million

Scott Tech chief executive John Kippenberger. PHOTO: SUPPLIED
Scott Tech chief executive John Kippenberger. PHOTO: SUPPLIED
Dunedin firm Scott Technology has signed two new major deals worth a combined $18million to end the year on a high.

The company has battled through the Covid-19 lockdown, dealt with cancelled and deferred orders overseas, but recently won several big contracts.

That included yesterday’s announcement of another contract with Alliance Group for a carton handling and managing system as well as a deal to build an appliance line for major Chinese washing machine company Little Swan.

"These latest contract wins signal a solid finish to the year for Scott Technology and reflects the execution of our new strategy and our focus on key areas of expertise," Scott chief executive John Kippenberger said.

Scott will help in the production of washer cabinets in its deal with Little Swan in China.

The system will be built at Scott’s China facility in Qingdao. The company’s New Zealand appliance designers will assist from afar and final commissioning is expected in July, 2021.

"China is an emerging market for us, with significant opportunity to build on the appliances work we have been doing for the likes of Bosch, GE and Candy Haier," Mr Kippenberger said.

He said there was an increasing demand for appliance automation in China, being driven by investment in new manufacturing capacity by companies looking to meet strong global consumer demand in white goods.

The company was moving to a large, purpose-built manufacturing site in 2021.

"This will be integral in supporting our future growth ambitions for our China appliance business, as well as being well positioned to supply our future European demand," Mr Kippenberger said.

He said the Alliance contract was an exciting chance to grow the company’s new focus on meat processing.

Scott will design and build a carton handling, sorting and palletising system for Alliance’s Lorneville plant.

It will make product handling more efficient, Scott said, by allowing more flexible, high-speed carton sorting and management.

"This will be the first project of its type for Scott in New Zealand, and will utilise proven technology developed by Scott Europe and deployed with European based customers such as Nestle and Danone," the company said.

"The Alliance project will be supplied from Scott’s facilities in Belgium and the Czech Republic, which are the company’s centres of excellence for materials handling technology and will be installed by the meat processing team in New Zealand."

The company had already announced it would build a $12.5million X-ray lamb boning system for Alliance at its Lorneville plant, near Invercargill.

The technology will be developed at Scott’s Dunedin offices over the next year.

Scott also announced it had signed a global partnership with French supply chain logistics company Savoye, whose

technology will be used in the carton handling project for Alliance.

Scott let go of 20% of its global workforce earlier in the year, including 15 jobs in Dunedin, as a result of Covid-19 impacts.

jacob.mcsweeny@odt.co.nz

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