MRO service provider SR Technics has gained successful financing and is repositioning its brand with a focused services portfolio to better serve its customers in the changing market environment.
SR Technics says it started the first quarter of 2020 with strong results but growth collapsed in April 2020 following a significant decline in customer demand as a result of the COVID-19 crisis. The company responded to this with immediate cash preservation measures and short-time work to secure the necessary liquidity to absorb the adversities.
SR Technics has now revealed it has agreed upon an additional credit line of CHF 120 million with its existing consortium of lending banks, which is supported by a 60% surety by the Swiss Confederation, improving the liquidity situation of SR Technics and ensuring its long-term future.
The management team of SR Technics has also critically reviewed the company’s services and their future competitiveness, deciding to strategically reposition the company with a clear focus on engine services and line maintenance.
Both of these services have demonstrated consistent profitable growth for the company prior to the crisis and are relevant to the aviation supply network in Switzerland. In addition, this will be complemented with a range of additional services provided by independent subsidiaries.
SR Technics chief executive officer Jean-Marc Lenz commented: “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.”
SR Technics will cease to provide design engineering solutions by the end of this year and restructure the 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.