Servotronics, Inc. Announces 2020 Hiring Initiative And Review Of 2019 Capital Expenditures

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Dec 23, 2019, 10:45 ET

ELMA, N.Y., Dec. 23, 2019 /PRNewswire/ -- Servotronics, Inc. (NYSE American: SVT), a designer and manufacturer of servo-control components and other advanced technology products, announces a major new staffing program to hire at least an additional 75 new employees at its Elma, New York headquarters and its facility in Franklinville, New York. The Company seeks qualified applicants for a wide range of positions on 1st, 2nd, and 3rd shifts, including entry level, skilled labor, and professional candidates.

The Company's head count currently includes 350 full-time and 5 part-time employees. This represents a nearly 25% increase compared to the end of 2018. The Company also has 35 contract employees who were retained to assist with a specified project beginning in 2019. The Company anticipates that the use of contract employees will wind-down in 2020 with the work transitioning to full-time employees.

Additionally, the Company has incurred approximately $2 million in capital expenditures in 2019 to expand and modernize its operations. Major projects undertaken this year include the implementation of a new ERP system and other information technology software and hardware, the acquisition of machinery and equipment and building improvements at both the Company's Elma and Franklinville facilities. Nearly all of the capital expenditures relate solely to the Company's Advanced Technology Group with the exception of the ERP system which applies Company-wide.

"As the Company has grown in recent years, we have made a concerted effort to invest in our people and our infrastructure," said Kenneth D. Trbovich, CEO and Chairman of the Board. "We continually look for ways to improve our manufacturing processes and lower our costs to remain competitive in the industries we serve. One example is our efforts to cross-train our employees and utilize our Franklinville facility, historically used by our Consumer Products Group, to help meet the growing demand for our ATG products."

Applicants may view job openings and apply for both posted positions and general consideration at: http://servotronics.com/careers/.

Servotronics, Inc. is composed of two groups – the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). The ATG primarily designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, manufacturing equipment, etc.). The CPG designs and manufactures cutlery, bayonets, machetes and combat, survival, sporting, agricultural, and pocket knives for both commercial and government applications.

FORWARD-LOOKING STATEMENTS

Certain paragraphs of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as those pertaining to the Company's planned growth efforts and expectation of new business and success in its entry into new product programs. Forward-looking statements involve numerous risks and uncertainties. The Company derives a material portion of its revenue from contracts with agencies of the U.S. Government or their prime contractors. The Company's business is performed under fixed price contracts and the following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: uncertainties in today's global economy and global competition, difficulty in predicting defense appropriations, the vitality and ability of the commercial aviation industry to purchase new aircraft, the willingness and ability of the Company's customers to fund long-term purchase programs, and market demand and acceptance both for the Company's products and its customers' products which incorporate Company-made components. The success of the Company also depends upon the trends that affect the national and international economy. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements.

SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE AMERICAN

SOURCE Servotronics, Inc.