After acquiring Swfr120 million ($125 million) of finance backed by the Swiss government last week, SR Technics has announced plans to reshape its business to focus on line maintenance and engine MRO services.
The MRO provider acquired the extra line of credit to improve liquidity in the wake of the novel coronavirus pandemic. The Swiss Confederation will support the bank-loaned finance with a 60% surety. The agreement was finalized on July 15 with SR Technics, which is owned by Chinese conglomerate HNA Group.
After reviewing the competitiveness of its aftermarket services, the company says it will cease its design engineering services offering by the end of 2020. SR Technics holds EASA Part 21J Design Organization approval, allowing it to design and certify major and minor modifications along with repairs on large aircraft.
It will also restructure its flight-hour-based component services portfolio, which it plans to reduce. However, it will maintain its transactional component business while putting a stronger emphasis on component repairs and trading activities.
Jean-Marc Lenz, CEO at SR Technics, says the move to reshape its offerings is a necessary step to ensure long-term sustainability and to provide added value. Aviation Week has contacted the company about any potential job impacts resulting from the restructure. Currently, SR Technics employs around 2,800 staff worldwide.
Like many MROs, SR Technics has been hit hard due to the novel coronavirus pandemic and saw a collapse in demand from April. This followed a solid start to the year with results ahead of expectations in the first quarter of 2020. Shortly after the COVID-19 outbreak, the company implemented several cash prevention measures including placing its workforce on short-time working measures.
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