King Systems today revealed details of its manufacturing restructuring programme that is expected to save over $5m per annum in cost and raise operating margins over 3 years
King Systems today provided details at the preliminary results of Consort Medical plc, its parent company, of a transformation programme in manufacturing that is expected to significantly reduce manufacturing cost and improve efficiency.
The transformation programme will progressively automate the assembly of King Systems’ core manufacturing processes for the production of circuits and masks. The automation programme will increase quality, increase capacity, reduce lead times and cost and is expected to free up manufacturing space for future growth.
The three year programme is expected to deliver an annual cost reduction of over $5m. Consort Medical revealed that a special charge of $5m would be incurred over the programme to deliver the savings but that the necessary capital investment in new equipment would largely be covered within the group’s normal expenditure levels.
Don Dumoulin, CEO of King Systems, said: We are all very excited about this project. We aim to enhance both the quality and competitiveness of all our core products and to reinvest some of the increased margins into further innovation and R&D to stimulate our top line growth. We believe that this programme will affirm King Systems’ reputation as a leading US manufacturer of medical devices for airway management and will position us well for our long term future success.