Engineer Senior to close Dutch plant as aviation demand shrinks
Aerospace engineer Senior this morning announced that it would close its plant in the Netherlands as the coronavirus pandemic continued to crush the aviation industry.
In a trading update this morning, the London-listed firm said that aerospace sales were down 45 per cent for the third quarter, and 36 per cent for the year to date.
Senior said it had anticipated such a decline due to the combination of the pandemic and the ongoing grounding of Boeing’s 737 Max.
As a result in the decline in manufacturing activity, the firm said it had undertaken a number of restructuring actions to the tune of £37m.
One of these will see its Senior Aerospace Bosman facility near Rotterdam folded in with its French business next year.
It has already merged its aerospace structures division and aerospace fluid systems division to form one aerospace division.
Chief executive David Squires said that it was unlikely that the company’s revenues would recover before 2022.
“In 2021, Aerospace is set to be at least as challenging as 2020 given the current production rates which our customers are advising”, he said.
“This highlights the importance of both the comprehensive restructuring actions which we are taking and the relentless and effective focus on cash preservation and liquidity.”
Shares in the firm rose 0.6 per cent as markets opened this morning.