(Alliance News) - Gooch & Housego PLC on Tuesday said it plans to streamline its Acousto Optic and Precision Optic manufacturing as part of its ongoing performance improvement programme.
Under current plans, the optical components and systems manufacturer said an Acousto Optic hub would be created at its Fremont, California site, which would combine the Acousto Optic capabilities of its Fremont and Ilminster facilities.
Gooch & Housego said it is also "actively" exploring outsourcing Acousto Optic manufacturing with established contract manufacturers who have facilities in south east Asia.
These plans will enable the company to consolidate design, engineering and research & development resources, and to continue to provide high quality, cost competitive products to the industrial laser market, it said.
Turning to the Precision Optic business, Gooch & Huosego said it has "strong" future growth potential from components and sub-assemblies, selling into aerospace & defence and semiconductor markets.
The company said it is planning on establishing a single UK Precision Optic hub at its Ilminster facility fashioned from its two current Precision Optic sites at Ilminster and Glenrothes. As part of this plan, Gooch & Housego said it will transfer Glenrothes Precision Optic manufacturing resources and capabilities into Ilminster and the Glenrothes site will be closed.
Gooch & Housego said it expects this transfer to be completed during the second half of its financial 2021, which ends on September 30.
The company expects total investment to be about GBP5 million across its financial 2020 and financial 2021 years.
"The streamlining of our Acousto Optic and Precision Optic manufacturing is part of an ongoing programme of performance improvement that will enable the group to continue to provide high quality, cost competitive products to the industrial laser and aerospace & defence sectors," explained Chief Executive Mark Webster.
"By creating hubs which would manage the day to day design, engineering and manufacturing for Acousto Optic and Precision Optic we would be able to better focus on our customers' emerging product needs and provide them with market leading levels of quality and delivery performance," added Webster.
AIM-listed Gooch & Housego shares were trading 1.1% lower in London on Tuesday at 1,201.75 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Gooch & Housego (GHH)