UK tech components maker mulls moving out of Sri Lanka amid unrest
UK electronic components maker DiscoverIE could transfer its Sri Lankan operations to China or India amid political unrest in the country.
The London-listed firm, which designs and manufactures computer chips and transformers for the wind energy market, has drawn up contingency plans to ensure output levels remain the same as the company experiences heightened demand.
While the plan is not in action – with operations currently unimpacted – the company has been subsidising its Sri Lankan employees’ living costs during economic turmoil.
The facility in Sri Lanka is just one of 31 of DiscoverIE’s production sites worldwide, representing six per cent of its total sales.
DiscoverIE has hit a record order book size of £240m in three months to 30 June, up 40 per cent in comparison to the £224m it pulled in the previous quarter.
Global sales have jumped nearly a third in the period, as demand from industrial sectors soars.
“With a clear strategy focused on long-term, high quality, structural and sustainable growth across Europe, North America and Asia, a diversified customer base, a record order book and a strong pipeline of acquisition opportunities, the group is well positioned to make further good progress on its key priorities,” the group said in a statement today.