Client Successes - Case Study Five

Project: Business restructuring - marine components

Background issue

This £30m market-dominant marine piston ring group had legacy plants in Sweden, Italy and the UK and newly acquired low-cost businesses in China and East Germany. It needed to restructure these international operations to maximise its return on high technolgy investment in Europe and low wage costs in China.

As a consequence, the UK site was to be divested of volume production and the focus to be concentrated on a revitalised stockholding and sales operation.

Firth Interim Management input

The objective of the interim managing director assignment was to oversee this difficult project in such a way that business continuity was maintained and the platform for future growth set.

Results

As a result, productivity was improved by reducing head count 30% at the same time as gaining ISO 9000 approval. Sales effort was refocused by using IT systems for competitive advantage and a new business stream was developed by reinvigorating "Cinderella" products. Sales actually grew by 8% in 6 months to £5m and profitability improved significantly.

At the end of the assignment, management control of the now smaller operation was repatriated to Head Office in Sweden.

Endorsements

"During his stewardship, Stuart was quick to identify the underlying problems within the Company and to apply solutions which resulted in a steady turnaround in the Company's business. Consequently I have no hesitation in recommending his services".

Tony Lodge, chairman, Daros UK