Partner Article

Nissan supplier sees rocky road ahead

A major supplier to Nissan’s Wearside plant yesterday described its future outlook as uncertain but said it was well equipped for the challenge ahead after reporting an £8m dip in annual turnover.

Sunderland-based Unipres (UK), which stamps and assembles car parts, said its turnover in the year ending December 2009 was £119m, compared to £127m the previous year.

Profit after tax climbed by £1m to £8.7m while the company’s workforce was reduced by 122 to 624 during the period.

The firm said it had recovered well from the tough economic climate to improve profitability and cash flow during the year.

From the second quarter of the year onwards sales volumes proved to be robust, the company said, supported in part by the government scrappage scheme.

The group also successfully launched a range of components for the Honda Jazz model, involving establishment of a satellite assembly facility in the Midlands.

A company statement said: “Nissan’s recent announcement of the introduction of a third shift at its Sunderland plant for the Qashqai model production is a positive indicator that the robustness of business levels will continue in 2010.

“However the continued weakness of economic conditions means that the outlook remains somewhat uncertain. In any circumstances the continuing rationalisation programme supported by UPS (Unipres Production System) principles means that the company will be in a very strong position to face the challenges ahead and to capitalise on the opportunities arising on economic recovery.

“2010 will see the introduction of a range of components for the new Nissan Juke model and expansion of Honda Jazz business there will also be continued activity to diversify the company’s customer base with particular emphasis on developing business with Honda.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .