SR Technics of Zurich, Switzerland, has secured financing and is repositioning to focus on engine services and line maintenance.
After a successful turnaround and solid financial results in recent years, SR Technics says it started the first quarter of 2020 strongly, with results ahead of expectations, but that this growth collapsed in April 2020 following a decline in demand as a result of the global COVID-19 pandemic. To secure the necessary liquidity to absorb these adversities, SR Technics implemented immediate cash preservation measures and short-time work.
SR Technics has now agreed upon an additional credit line of CHF 120m (€112m/US$128m) with its existing consortium of lending banks, supported by a 60% surety by the Swiss Confederation. The agreements between the banks, the Swiss Confederation and SR Technics were signed and completed on 15 July 2020.
To preserve the long-term financial health of the company in a changed market environment, the SR Technics management team has also critically reviewed the wide array of services offered and their future competitiveness. It has been decided to strategically reposition the company with a clear focus on engine services and line maintenance, as the company says both have demonstrated consistent profitable growth prior to the crisis and are relevant to the aviation supply network in Switzerland. This main business will be complemented with a range of additional services provided by independent subsidiaries.
SR Technics will cease to provide design engineering solutions by the end of 2020. It will also restructure flight-hour based component services, which will be progressively reduced, while maintaining the transactional component business with a stronger focus on component repairs and trading activities.
“In this competitive and dynamic MRO market, this repositioning of SR Technics as a Swiss quality brand with highly skilled employees is a necessary step to ensure long-term sustainability and to provide added value to our customers, focusing on engine services and line maintenance,” said Jean-Marc Lenz, CEO at SR Technics.