Scott Technology Limited logo

Scott announces record USD $35m deal into North America

Operational Update30 May 2022SCTIndustrials

31 May 2022
Company announcement


SCOTT ANNOUNCES RECORD USD $35M DEAL TO EXPAND MATERIALS HANDLING BUSINESS INTO

NORTH AMERICA

Project with JBS Canada will see first Scott end-to-end MHL system installed in the region


Auckland, New Zealand: Scott Technology (NZX:SCT) is pleased to announce that it has signed a

non-binding memorandum of understanding to deliver its first fully automated warehousing system

for JBS Canada’s Brooks plant in Alberta, which has an estimated value of USD $35 million (NZD $56m).

The project will be the largest ever in Scott’s history and will see them integrate existing technology

from across the group, together with systems from its joint venture partner Savoye to design and build

a complete end-to-end material handling solution capable of handling 85,000 cartons.

Scott Technology CEO John Kippenberger says he is excited to combine their proven technology, with

Savoye’s proprietary components to deliver a world-class solution for JBS. “In 2020 we signed a joint

venture agreement with Savoye to use their automated carton storage and retrieval technology to

expand our Scott material handling system offering. With this JBS transaction, we will deliver a truly

end-to-end solution, integrating the Savoye tech seamlessly with Scott’s own conveying, sorting and

palletising applications.

“As part of our Scott 2025 strategy, we committed to expanding our proven materials handling

business outside of its European stronghold and into the North American market, with a particular

focus on frozen foods and meat processing. Our partnership with Savoye was the first step and today’s

announcement demonstrates that we are delivering on our plan,” says Kippenberger.

The JBS facility in Brooks city is one of the largest beef processing facilities in Canada, employing over

2,800 people. The new Scott automated solution will replace a fully manual system, increasing product

handling efficiencies by allowing more flexible, high speed carton sortation and management.

“Like New Zealand, North America continues to experience labour supply issues, particularly in the

meat processing space,” says Kippenberger. “The new system will not only address this challenge, but

it will also improve safety as one carton can weigh up to 50kgs, reduce storage costs, errors, and

deliver improved inventory turns. It represents significant efficiencies and cost savings for JBS

Canada.”

Specifically, the system will manage 600 SKUs (Stock Keeping Units) in a highly flexible manner,

allowing for optimised order management. It will enable picking of 3,000 cartons per hour, shipping

of 40,300 cartons per day, high-speed palletising of 120+ pallets per hour and provide high-density

storage for 85,000 cartons. It will integrate with Warehouse Execution Software for complete

monitoring, management, and control of goods.

The project will be supplied from Scott’s facilities in Europe, the company’s centres of excellence for

materials handling technology. Scott’s AGV components will be supplied out of Scott USA.


Entry into the JBS transaction is being undertaken without shareholder approval in reliance on a

waiver from NZX Listing Rule 5.2.1 granted by NZ RegCo on 31 May 2022.

ENDS


For more information, visit www.scottautomation.com or contact:

John Kippenberger Media contact:

Chief Executive Officer, Scott Technology Amber McEwen

T: +64 21 964 045 T: +64 21 194 0429

E: j.kippenberger@scottautomation.com E: amberm@porternovelli.kiwi


About Scott

Scott delivers smart automation and robotic solutions that transform industries by making businesses

safer, more productive, and more efficient. Our diverse capability makes us the first choice for

hundreds of the world’s leading brands. With design and build operations across Australasia, China,

Europe, and America and over 100 years of engineering excellence, Scott is the global expert in

automation.

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

Other issuers discussed similar conditions around this time

Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.

  • SKL — Skellerup Holdings Limited: Skellerup reports another record result
    2022-08-17

    82SKELLERUP ANNUAL REPORT FY22 24. Related Parties The consolidated nancial statements incorporate the following signicant companies: (a) Subsidiary companies Name of EntityPrincipal Activities Country of Incorporation Holding Balance Date20222021 Skellerup Industries LimitedM…”

  • ERD — EROAD: EROAD FY22 Financial Results
    2022-05-25

    31 THE NEXT GENERATION SOLUTION MEETS THE NEEDS OF PROFESSIONAL TRANSPORT, REFRIGERATED TRANSPORT, CONSTRUCTION AND WASTE INDUSTRIES IN CAB PROFESSIONAL TRANSPORT REFRIGERATED TRANSPORT CONSTRUCTION WASTE AND RECYCLING CoreHub can easily connect and integrate with AI Ca…”

  • RAK — Rakon Limited: Rakon reports record earnings performance, EBITDA up 132%
    2022-05-25

    Governance & risk update Board and CEO succession •Board succession and CEO transition oNew CEO appointment oTwo new directors appointed (Steve Tucker and Sinead Horgan) oNew Chair Lorraine Witten following Bruce Irvine’s retirement •Close monitoringof Covid-19 and supply chain…”