Opportunities to increase value
Smiths has opportunities to create value for shareholders by improving performance and growing our businesses.
Taking advantage of opportunities
Self help is taking many forms at Smiths. To improve efficiency and remove a layer of management the Smiths Specialty Engineering division has been disbanded. To improve customer focus, operating divisions’ headquarters are relocating from London to be close to their operations. To reduce costs and improve lines of accountability the corporate centre has been halved in size, focusing its activities where it can add value. To improve service levels and deliver the necessary data and information a new Global IT Service Delivery organisation has been created.
Expanding capacity for airport checkpoint systems
Over the past year, Smiths Detection has deployed new checkpoint X-ray machines that for the first time automatically detect explosives and liquids in carry-on bags. Now located in most major UK airports, these aTiX systems are being rolled out in the USA and globally. To achieve the necessary manufacturing capacity to meet this demand, the Smiths Detection facility in Wiesbaden, Germany, has been expanded substantially. In less than 12 months, the team has designed and completed an extension dedicated to the production of new equipment such as the aTiX system.
Building capacity in Asia
Flex-Tek is broadening its footprint in Asia, where its existing plant in Malaysia continues to expand. Over the past year it has added to this with new manufacturing facilities in Bangalore, India, in the Clark Special Economic Zone, Philippines and Changzhou, China. The facilities in India and Philippines are aimed at better serving its aerospace customers, following increased demand due to the growth of air traffic in Asia. The facility in Changzhou is focused on the growing HVAC and household appliance market in China.
Creating one global John Crane
A project launched in June 2008 is bringing together the two geographic John Crane organisations. Unifying John Crane – with a head office located in Morton Grove, US – will enhance performance and improve customer service, while implementing a truly global product portfolio. The leadership team is creating an organisation that can more effectively deliver state-of-the-art solutions anywhere in the world. In this way John Crane has the capacity to provide customers with a global operations platform, assuring rapid delivery of products while improving service support capabilities.
Expanding in the world's major telecoms market
Some 70% of the world's wireless telecommunications infrastructure equipment is manufactured in China. To expand its footprint in the region, Smiths Interconnect acquired Allrizon, a Shanghai-based communications equipment firm. Allrizon together with Triasx – an Australian based business also with Chinese operations and acquired recently – complement and extend Smiths Interconnect's microwave business. They add not only Chinese manufacturing capacity but also strong design teams and good relationships with key wireless telecoms infrastructure customers.
Developing new medical products
Smiths Medical is increasing R&D in order to boost new product development. With a strong pipeline in place, new products are reaching the market. Recent innovations include UniPerc™, a unique tracheostomy tube designed for patients with larger necks – a problem increasingly faced by clinicians due to rising obesity levels among patients. When it comes to delivering medication, the new Medfusion 4000™ system helps to treat patients with cancer and painful conditions. It features wireless connectivity to enable clinicians to monitor the performance of the machine remotely.