SR Technics announces the sale of its design engineering solutions to groWING.aero
SR Technics announces today the successful financing and new company strategy to reposition the brand with a focused services portfolio to better serve its customers in the changing market environment.
After a successful turnaround and solid financial results in the last years, SR Technics started the first quarter of 2020 strongly with results ahead of expectations. The growth has collapsed in April 2020 following a significant decline in customer demand as a result of the industry-wide COVID-19 crisis. To secure the necessary liquidity to absorb these adversities, SR Technics acted decisively with immediate cash preservation measures and short-time work.
SR Technics has now agreed upon an additional credit line of CHF 120 million with its existing consortium of lending banks, supported by a 60% surety by the Swiss Confederation, which improves the liquidity situation of SR Technics and ensures its long-term future. The agreements between the banks, the Swiss Confederation and SR Technics have been signed and completed on July 15, 2020.
To preserve the long-term financial health of the company in a changed market environment, the SR Technics management team has also critically reviewed the wide array of services offered and their future competitiveness. It has been decided to strategically reposition the company with a clear focus on engine services and line maintenance, as both have demonstrated consistent profitable growth prior to the crisis and are relevant to the aviation supply network in Switzerland. This main business will be complemented with a range of additional services provided by independent subsidiaries, ensuring a stronger and sustainable company ready to support its customers.
In turn, SR Technics will cease to provide design engineering solutions by the end of this year. SR Technics will also restructure the flight-hour based component services, which will be progressively reduced, while maintaining the transactional component business with a stronger focus on component repairs and trading activities.
Jean-Marc Lenz, Chief Executive Officer at SR Technics said: “In this competitive and dynamic MRO market, this repositioning of SR Technics as a Swiss quality brand with highly skilled employees is a necessary step to ensure long-term sustainability and to provide added value to our customers, focusing on engine services and line maintenance.”