Circatex hire trouble-shooter - recovery in the pipeline
Feb 05, 2004
A top troubleshooter has been hired by Tyneside computer circuit board-maker Circatex, according to an article By Steven Oliver, The Evening Chronicle, Newcastle.The article goes on to say that the industry expert believes brighter times are just around the corner for the company and its 600-strong workforce.Circatex, which emerged from the ruins of Viasystems in December 2001, has been hit hard by a massive worldwide recession in microchips. The South Shields-based company has been forced to compete against a flood of cheap Chinese boards.But the market is poised for a long-awaited recovery - now Circatex is trying to break free of crippling cash-flow problems and grab a share of new orders from all over the world.In a first step it has brought in a firm of corporate recovery specialists called Postern to draw up a plan of action. Postern managing director Archie Coulson said the first stage involves a comprehensive review of the Circatex operation. Mr Coulson believes Circatex could be in a great position to take advantage of the market upturn.The upbeat analysis has been welcomed by the Amicus union, which represents many of the workers. Regional officer Mel Barras said: "If anyone deserves to get something out of life, it is the workers at Circatex." One of the workers, who did not want to be named, said: "We have been getting our wages paid in two instalments during the month, which is not exactly ideal. "But we want it to keep going so we have accepted this. However, there will come a time when this loyalty will wear thin."