Connect Systems, the contract manufacturing division is doing well. Total sales are up 42% from 52.3m to 74.2m. This breaks down into 30% internal growth and 12% external growth from the acquisition of Infotron, through which the division is now active on the German market. During the past year, the plants in Vrable (Slovakia) and Oradea (Romania) expanded significantly. In 2004, this activity represented 60% of total IPTE sales volume.
Managing director Huub Baren in summarizing the last year: “For 2004 we look back with mixed feelings. On the one hand, we have the strong growth and profitability with our Connect Systems group. On the other hand, a hesitant market has required us to reorganize our automation activity. General demand for automation projects remains below our expectations, and we do not see any fundamental improvement on the horizon in 2005. For these reasons we have decided to adjust the strategy we have applied until now in the Factory Automation division and not to undertake any further expensive competence extensions. We will be concentrating on our existing areas of expertise to improve profitability. For our automation activity we therefore expect 2005 to be a stable, no-growth year”.
EPP EUROPE 404
