Product category:
Manufacturing orders, contracts, financial reports
News Release from: 600 Group
Edited by the Manufacturingtalk Editorial
Team on 28 February 2007
Machine tool builder appraises new
strategy
The past twelve months have been of major significance for the development of the 600 Group in machine tool building and has embarked on a new strategy successfully.
No company can simply plod along and hope to retain its position as a leading machine tool manufacturer This is even more true of a group such as the 600 Group, UK, which has an extensive though complementary portfolio of both manufacturing and distribution companies throughout the world
This article was originally published on Manufacturingtalk on 13 Apr 2004 at 8.00am (UK)
Related stories
Open House event ups visitor numbers by 22%
October's Productivity Partnerships Open House at 600 Centre, Shepshed, attracted 22% more visiting companies than April's event, as machine tool buyers took full advantage to view products.
Check up on flexible m/c tool funding packages
An informative new brochure outlines the extensive range of specialist machine tool finance services offered by 600 Finance.
The past twelve months have been of major significance for its development because it completed a detailed review of its activities, devised a substantially different business strategy and has embarked successfully on the implementation of that strategy.
* New strategy - the new strategy, announced in October 2006, is based on making all the Group's activities customer focused and customer driven.
The new strategy re-formed the Group into three divisions, reflecting its existing activities but bringing them into a more orderly, formal conformation.
Further reading
UK machine tool builder expands presence at MACH
As the world's largest UK-based machine tool manufacturer, 600 Group will exhibit a wide range of new products and services from the largest combined stand at the forthcoming MACH 2002 show.
More capacity, higher power given for lower price
The mid-range Tornado 220, from Colchester is 20% lower in price than the Tornado 210 version, is some 50 per cent heavier and provides a 25 per cent improvement in its damping characteristics.
Easy-to-use manual/CNC lathe launched in Chicago
Unrivalled ease-of-use features the latest manual/CNC lathe, thanks to its specially developed Fanuc/Harrison control and full-size colour touch-screen. It makes its debut at IMTS.
These divisions are 600 Machine Tools, 600 Electrox Laser and 600 Solutions.
600 Machine Tools is split into three new brands and is comprised of lower technology value machines (branded Clausing), medium technology CNC machines (branded Colchester-Harrison), and high technology factored machines (referred to internally as 600 Solutions).
600 Solutions is aimed at customers with specific needs and is geared to offering customers best-in-class, tailored solutions suited to specific geographic requirements and exploits the Group's international expertise and the strong applications engineering which has always been at its heart.
Globally, the focus of the Group's efforts will be North America, Eastern and Central Europe as well as a continued strong presence in the mature Western Europe and UK markets.
Distribution companies are being directed to refine their activities to suit and develop the specific market in which they operate using as many of the Group's wide-ranging resources as necessary to provide a successful, customer orientated service.
Manufacturing companies, largely though not exclusively positioned in the medium technology market, likewise are required to focus on continuing to develop a range of products which serve their existing and potential customer base.
* Half year results - the half year results imply the new strategy is already having the desired effect.
The results were in line with target figures, with a profit before tax of GBP 0.3m.
During the first half of the year order intake was increased compared with last year, particularly due to significant improvements in the UK manufacturing operations and the Group's South Africa operation.
The order book for the second half of the year is outstanding.
Europe Of great importance to the Group throughout Europe is signing the contract with Fuji to become its sole distributor throughout Europe.
The Group already had a strong relationship with Fuji, with which it has worked extremely successfully in both the UK and Canada for many years.
The extensive new territory has been assigned by Fuji to 600 Group on the basis of the good experience both companies have had working together in the Canadian market.
The new agreement makes the Group responsible for marketing on behalf of Fuji, the largest supplier of automated lathes to the automotive industry, throughout both Eastern and Western Europe and the UK.
The Group is already working with Fuji on significant existing lathe orders, and based on the enquiry level, anticipates rapid growth.
Willi Gollmer has been appointed to spearhead the development of the Group's European operations and is also directly responsible for the German operation.
The German operation itself is being reorganised to be more sales orientated, with a new showroom and a newly appointed sales manager.
Eastern Europe continues to be one of the strongest regions for Group sales in general and is the first area of success under the new arrangements with Fuji.
An extensive advanced training programme for staff is being implemented and additional personnel are being recruited.
UK The UK has been a strong growth area during the past twelve months, in particular due to the growth of both 600 Solutions and Electrox laser marking machines.
600 Centre has become the 'hub' for 600 Group's machine tool sales in the UK and Ray Grocock has been appointed the managing director.
The expanded 600 centre operation combines the UK sales effort for both 600 Solutions and the Colchester-Harrison range under the leadership of newly appointed sales director, David Wilkinson.
Harrison lathes are now being sold direct from 600 Centre, with a consequent increase in both enquiry levels and conversion rates.
Relationships with exiting distributors have been maintained.
600 Centre itself has been refurbished, with an enhanced showroom and demonstration area and more meeting rooms.
Since combining all the sales under the one director, sales have more than doubled and that trend looks set to continue.
The growth is expected to be significantly enhanced by the creation of Fuji Europe, based at 600 Centre and managing the entire distributorship for Fuji throughout the UK, Eastern Europe and most of Western Europe.
Gerry Pulford has been appointed general manager UK for the Clausing lathes and is responsible for the development of this market.
Orders have already been received and the first machines will be shipped in early April.
* North America - traditionally one of the Group's strongest markets, Don Haselton has been appointed president 600 Incorporated and has already created a vibrant new distributor network which combines the best of the existing distributors with carefully selected new ones.
This is increasing sales of both conventional and CNC machines, in particular the Colchester-Harrison range.
New distributors have also been appointed in South America.
Haselton has also taken overall responsibility for 600 Machine Tools (the Group's Canadian operation) which is currently being reorganised.
Additional distributors are being appointed specifically to grow the sales of the Colchester-Harrison range and a service manager has been appointed to further develop the applications engineering side of the operation, an area in which the Canadian operation has always been very strong.
Haselton is responsible for developing the Storm range of Colchester-Harrison vertical machining centres (formally Richmond) while Joe Felicijan, President of Clausing Incorporated, the North American operation, is spearheading the promotion of the mainly conventional Clausing range which in North America has always included our range of conventional drills, saws, grinders, lathes and metal munchers.
* ROW - South Africa, although one of the smaller markets, continues to be extremely profitable and is embracing the addition of both Fuji and Joemars to its range.
Australia has very much 'taken the bull by the horns' under the guidance of its recently appointed new MD Cliff Purser and has taken on additional sales and applications engineers, invested in additional staff training, added sheet metal machines from Dener Makine to its range and is extending its work with both YCM, which manufactures a high quality range of machining centres and lathes, and Fanuc for its vertical machining centres (Robodrills).
* Manufacturing companies - all of the Group's manufacturing companies - 600 Lathes, Crawford Collets, Electrox, Gamet Bearings, and Pratt Burnerd International - have traded well during the past year.
600 Lathes is continuing with its reorganisation, with consequent improvements in lead times and its ability to respond quickly to customer need for bespoke machines.
Sales have continued to improve.
Electrox has introduced new marking machines during the past twelve months and has launched its own technology platform, E F Technology.
Sales have continued to improve substantially throughout the world, particularly so in the UK where sales are up by over 150%.
A vice president Sales and Marketing has been appointed to further develop the sales team in North America, new demonstration facilities and offices have been established in Singapore and Germany.
Gamet Bearings is at full stretch, remaining the preferred bearing supplier to many of the high quality machine manufacturers throughout the world.
Gamet is poised to sign a major order from China and is in receipt of significant new orders from its traditional markets in India and Italy.
Pratt Burnerd International and Crawford Collets continue to maintain strong sales, particularly in North America and in Germany.
* 'Off-shore' manufacturing - the relationship with China continues to strengthen and expand, partly as a result of establishing an office there under the experienced guidance of Alan Wiseman, himself 'time served' with 600 Group.
Machines manufactured to the Group's specification and based upon its intellectual property are being delivered to the UK according to its quality control systems and its delivery schedules.
Summarising, chief executive, 600 Group, Andrew Dick said: "The results we have achieved so far are better than expected.
Much of course remains to be done but we are steadily and constructively creating real improvements in every area of our business.
We will continue to refine and build on our strategy in every area as circumstances dictate.
We will continue to develop our manufacturing companies.
We have a hectic sales and marketing programme already in place for the coming twelve months, including some very significant exhibitions.
Perhaps most notable amongst these will be EMO, where for the first time we have three stands as well as two 'partner' stands.
A great deal of activity will be focussed on and around that exhibition, where we will have a number of new product announcements to make.
We are making significant steps forward along the road to becoming a highly customer-orientated, development focused force in the manufacturing industry.
Our progress is steady, sure and solid.
On those substantial and secure foundations we continue to build.".
• 600 Group: contact details and other news
• Email this article to a colleague
• Register for the free Manufacturingtalk email newsletter
• Manufacturingtalk Home Page
Search the Pro-Talk network of sites
