Sigma grows into emerging markets in Asia

Date: 29th November 2009

Chengdu –based Sigma Precision Components has secured several contracts direct with customers in Asia confirming the start of a new phase in Sigma’s development.

Since gaining AS9100 approval in 2007, Sigma has grown an impressive list of customer approvals with some of the world’s leading aerospace companies. It proudly serves Moog, GE, Eaton, Goodrich, Meggitt, Hamilton Sundstrand and Umeco and has approvals pending from Rolls-Royce & EADS.

Since formation, the company has grown supplying high quality precision parts to customers mainly in Europe and North America. More recently Sigma has now won several contracts supplying to the rapidly growing and emerging market in Asia. In past months, new parts have been manufactured and contracts secured that are expected to generate sales of over $3m.

Mark Johnson, Managing Director of Avingtrans Aerospace Division commented, “This latest development confirms the robustness of our strategy in establishing the business in China. As aerospace markets recover, we’re positioned to supply low-cost, high quality parts, not only to customers in Europe and North America but also to the emerging markets in China and wider Asia.” “These latest contracts give us confidence that the major OEM’s also see us having great potential to develop into their supply chains.”

Avingtrans completes £3.3m fund-raising

Date: 20th October 2008

On 20th October Avingtrans completed the sale of 7.0 million shares raising approximately £3.3m net of costs. The Placing proceeds will be used to fund the accelerated expansion of the Group's Sigma precision components business in Chengdu, central China, with over 80% being spent on capital equipment. Mark Johnson, Managing Director of Avingtrans Aerospace division commented: "This is wonderful news for our business and is a real vote of confidence in the capabilities and potential of the whole team. Our job now is to meet growing demand and deliver on time and to good quality quality meeting customer needs."

Graham Bannerman appointed as General Manger

Date: 1st October 2008

Sigma has appointed Graham Bannerman as General Manager of Sigma's ’s Chengdu Manaufacturing facility, replacing Kevin Donnelly. Graham joins Sigma from the oil & gas industry where he held senior positions in manufacturing and general management.

Graham not only has experience in the aerospace industry, but also spent several years setting up and running a manufacturing facility in Beijing for NCR making ATM's. Graham has already relocated to Chengdu where he is now permanently based.

Joining the company at an exciting time Graham commented, "I'm very pleased to be joining Sigma and look forward to growing the team in Chengdu. We already have some excellent customer relationships and I look forward to supporting the management team in Chengdu to grow further."

Earthquake shakes Sigma's Chengdu facility.

Date: 15th May 2008

Sigma’s facility in Chengdu was heavily shaken by the strong earthquake on Monday at 2:28pm, but fortunately, Sigma’s employees and business were not badly affected. Kevin Donnelly, General Manager of Sigma in Chengdu was on–site when the earthquake struck and staff were quickly and safely evacuated. Work resumed within 30 minutes, but a series of aftershocks created occasional disruption. As a safety precaution, night-shifts were suspended for a few days. Employees who could not contact immediate family were given leave, but otherwise work continued as normal. A visit to Chengdu by Avingtrans new chairman, Roger McDowell will go ahead as planned for 19th May.

Sigma has already assessed the implications of the quake and impact to Sigma’s customers will be minimal, mainly due to disruption to incoming material supplies due to relief support taking priority over commercial shipments. Sigma’s sister company B&D Patterns in the UK will support Sigma where needed to ensure that customers are not affected.

Mark Johnson, who travelled to China the day after the quake, commented “The in Chengdu have coped superbly during these horrific events and our thoughts go out to all those affected. Sigma’s strength combined with the global capability of Avingtrans will ensure that we keep our customers supplied with parts and achieve our plans for growth”.

Sigma further increases capacity.

Date: 10th March 2008

A further batch of machine tools has now been commissioned at Chengdu-based Sigma Precision Components Ltd. The latest machines not only increase capacity, but also enable Sigma to achieve tighter tolerance machining, down to as little as 0.0002". Sigma again selected Hardinge for this phase of machines, with Hardinge providing rapid local support in the unlikely event of a problem.

The machines have been installed in another cell providing the ability to turn, mill and finish the product in one area. During early 2008, Sigma started operating a night shift ensuring the company uses its machines to the maximum.

Sigma wins orders for Boeing 787 Components.

Date: 14th January 2008

Chengdu-based Sigma Precision Components Ltd is pleased to start 2008 receiving orders for precision machined components for the prestigious Boeing 787 Deamliner. Following an extensive evaluation, Sigma successfully passed a 3-day audit by customer Eaton in late 2007, leading to formal approval in January 2008.

Sigma will now produce initial parts for first article inspection on a program that will deliver multi-million dollar sales over the life of the contract. Commenting on this significant win, Sigma’s General Manager Kevin Donnelly stated “This is an important win for Sigma – Eaton are a leading name in the aerospace industry and we are pleased to be associated with them.”

Sigma ends 2007 with a string of customer approvals.

Date: 31st December 2007

Having only opened it’s facility in April 2007, Chengdu Sigma Precision Components ends 2007 having secured a range of customer approvals. Having secured BVQI AS9100 approval just 9 months ago, Sigma has now gained customer approvals from such prestigious names as Pattonair, Goodrich, Moog, Meggitt, GE (Smiths), Eaton & Penny & Giles.

Mark Johnson, Managing Director of Sigma and Avingtrans Aerospace Division commented: “The team in Chengdu have done superbly to gain this number of customer approvals as we continue to grow the volume of business. 2007 has been a good year of progress and we enter 2008 with a further phase of machine tools due for delivery and an expectation of continued growth towards our ambitious targets”

Sigma gains AS/EN9100 quality approval.

Date: 27th Mar 2007

Sigma Precision Components Ltd manufacturing facility in Chengdu, China has been successfully assessed by the international accreditation body BVQI to AS/EN 9100-B with certification now being processed.

Having secured investment from Avingtrans plc just 9 months ago, this final milestone allows Sigma to supply precision components to aerospace customers who demand the highest standard of quality approvals.

“We’ve been successful in hitting all of our target dates since investment, but achieving AS9100 was always going to be the hardest. We’re extremely pleased and proud of the whole team”, commented Kevin Donnelly, General Manager of Sigma in Chengdu, China.

The approval enables delivery of first parts to launch customer Umeco Components as Sigma has also gained initial approval from end-user Goodrich.

Sigma now continues to grow capacity and capability with further investment plans already approved by majority shareholder Avingtrans. Engineering Director Simon Timothy explained their strategy, “Initial orders for relatively simple machined components, will now be developed to include tighter tolerance machining, key characteristics and we already have agreements in place for NADCAP approved special processes with local suppliers.”

Mark Johnson, Managing Director of Sigma and Avingtrans Aerospace Division explains how Sigma’s approval strengthens the strategic position of Avingtrans; “Having an approved low-cost aerospace component manufacturing facility provides Avingtrans companies with a major competitive advantage and also allows access to the biggest emerging aerospace market in the world.”

The offical opening of Sigma’s purpose-built 3,000m2 facility on 3rd April by Jason Crabtree, Chief Executive of launch customer Umeco Components, marks this major milestone when over 100 guests celebrate the achievement.

First Production from Chengdu Facility

Date: 19th Dec 2006

Sigma Precision Components passed a major milestone today delivering first manufactured product from its Chengdu manufacturing facility.

Having gained investment for its facility exactly six months ago, Sigma has now equipped it’s 3,000m2 facility with an initial phase of 6 CNC machine tools and already employs some 20 personnel in it’s Chengdu-based factory.

As the company heads towards gaining AS9100 quality approvals in the first quarter of 2007, these initial deliveries of industrial parts are being used not only to generate early sales, but also to prove and develop the operating procedures and quality systems.

Mark Johnson, Sigma’ Managing Director commented “These may only be relatively low volume industrial sales, but their delivery marks a major milestone in getting our facility, machines and people ready for business. The whole team has done an incredible job achieving this milestone on time and within budget"

Sigma will now progress to manufacture initial components for their launch Aerospace customer Umeco Components with deliveries scheduled in the first quarter of 2007.

Facility & Government contracts signed

Date: 1st Sept 2006

Sigma makes major step forward securing agreement for significant incentive program and rental of 3,000m2 facility.

On 1st September, Sigma reached another major milestone in it's development, securing an attractive incentive package from the Chengdu High Tech Development zone. Simultaneously, the company signed an agreement to rent a 3,000m2 facility in the prestigious Export Processing Zone in the western suburbs of Chengdu.

The five-year deal gives Sigma an attractive package with the company taking possession of its 3,000 m2 facility within 2 weeks. Fit-out of the factory to Sigma's high specification will commence before the end of September with their first batch of 6 CNC machine-tools arriving before the end of October.

Kevin Donnelly, General Manager of Sigma's China Operations commented: "This is a major milestone for Sigma and now allows us to progress to gain the required approvals to commence manufacturing operations in China. We continue to build our management team and workforce in Chengdu and we are looking forward to initial manufacturing before the end of 2006."

Supported by it's major shareholder Avingtrans, Sigma will invest over $2.5m in it's facility in the coming years. The agreement gained much local interest with the news even featuring in local media...

Sigma secures growth investment

Date: 20th June 2006

Avingtrans plc invests in majority stake to support Sigma's growth.

Avingtrans, a leading designer, manufacturer and supplier of critical components and services to worldwide industries, today announced the acquisition of a 75% interest in Sigma Precision Components Ltd through the purchase of 300,000 new Sigma shares at a price of £1 per share. Sigma provides a range of services to aerospace and high technology markets and, with the injection of new funds into the business, is poised to accelerate the scale of its operations in China. Avingtrans will lend its expertise in the precision engineering sector as well as supporting Sigma through ongoing investment in capital equipment.

Sigma was founded in 2004 by two widely experienced aerospace professionals who saw an opportunity to create a business from the globalization into emerging markets of the $7 billion aerospace precision components market. Throughout their first year of operation Sigma provided consultancy services from its offices in the UK and China and now, with the benefit of customer commitment and investment support from Avingtrans, will establish a 40,000 sq. ft. precision component manufacturing facility in Chengdu, China.

Sigma's launch customer for the manufacturing facility is UMECO plc who have already publicly stated their confidence in Sigma’s ability to meet their high requirements in terms of quality and delivery.

Ken Baker, Chairman of Avingtrans, commented, “We are delighted to have acquired a majority interest at a time when Sigma is being transformed from a consultancy based group, employing four people, to a larger scale, Far East, manufacturing business that should become an important financial contributor to the Avingtrans group.”

Mark Johnson, Sigma's Managing Director expressed the delight of existing shareholders and management in securing Avingtrans as a partner for growth. "The deal with Avingtrans not only secures the investment for Sigma to further progress our plans, but also provides a superb framework on which to build future value."

Notes:

Avingtrans plc is a UK-listed company providing design, manufacture and supply of critical components and associated services, to manufacturing markets throughout the UK, Germany and North America. Listed on AIM, Avingtrans had a turnover of £24m to 31st May 2005. See http://www.avingtrans.plc.uk/

UMECO plc is a leading international provider of value-added distribution services and composite materials primarily to the aerospace & defence, automotive, motorsport, and wind turbine industries. Listed on the London Stock Exchange, UMECO had turnover of £242.4 million in the year to 31 March 2005. See http://www.sigmacomponents.com/www.umeco.com

Umeco signs Letter of Intent

Date: 22nd February 2006

UMECO Components Signs Letter of Intent With Sigma Precision components.....

At Asian Aerospace 2006, UMECO Components today announced that it has signed a Letter of Intent with Sigma Precision Components, the precision components specialists based in the UK and China. The agreement, designed to offer UMECO Components and its customers the opportunity to receive cost savings on a range of components in the future, will be effective immediately.

The mutually beneficial agreement was reached to take advantage of UMECO Components position as one of the leading provider of value-added distribution and supply chain outsourcing services to customers in the aerospace & defence market and Sigma’s strategic intent to manufacture low cost, precision machined parts in Chengdu China

Mark Johnson, Managing Director of Sigma, commented “We are really excited about our relationship with UMECO Components. Our joint intent will make UMECO components even more competitive in their chosen markets and also help Sigma grow and develop our own capability. It’s going to be a busy year!”

Jason Crabtree, Chief Executive of UMECO Components, commented: “We are extremely enthusiastic about the link with Sigma and the potential cost savings it could offer to us and our customers. We believe that Sigma has the ability to reach our high level requirements in terms of quality and delivery and we look forward to working with them to deliver low cost precision parts to the Aerospace and Defense market.”

For details on Umeco see www.umecocomponents.com or www.umeco.com

Engineering Manager joins Sigma

Date: 23rd January 2006

Simon Timothy has joined Sigma's Management Team as Engineering Manager .....

As Sigma enters it's second year of operation in 2006, to support its' growth the company has strengthened its Management Team with the recruitment Simon Timothy.

As Engineering Manager, Simon will hold responsibility for many technical aspects of Sigma's operations including the control of suppliers and processes in Sigma's supply chain in China.

As a GE-trained Six Sigma Black Belt, Simon brings sophisticated modern process control and manufacturing methodology to the companies capability. Having a strong aerospace background, he has spent many years sourcing aerospace components including from low-cost sources.

Sigma helps Yacht Manufacturer

Date: 10th September 2005

European Yacht Manufacturer ask Sigma to help develop global supply chain.....

A leading European Yacht Manufacturer has placed a contract with Sigma Precision Components to help them develop global supply chains to further improve the value of their yachts.

Sigma will identify, audit, benchmark and visit major suppliers in China and develop potential sources of products to further improve the quality and value of yachts from 40 feet to over 100 feet in length.

Sigma's customer recognises that in ever developing global markets, utilising the strengths of companies in all regions is essential to maintain competitiveness and a value offering that delivers perpetual growth.

Sigma will finish the project and deliver all results, samples and a detailed commercial proposal before the end of 2005. Sigma hopes to build their relationship with the client into an ongoing trading relationship where Sigma will hold complete procurement responsibility for managing the complete supply chain, delivering low-cost, high quality product to the point of use.

Mark Johnson, Managing Director of Sigma commented... "We're really excited about this contract. It demonstrates that global sourcing and market development opportunities apply to diverse markets from Aerospace to Industrial, Medical and Marine. We're confident we'll be able to deliver significant short-term savings and further long-term potential to our client."

Major Contract Win with Doncasters

Date: 5th September 2005

Sigma wins significant contract……

Midlands-headquartered Sigma Precision Components has won a major contract with the Doncasters Group Ltd. headquartered in Derbyshire to help focus and guide the group’s growth into emerging Asian markets. Terms were not announced but the first phase of the project is expected to be completed by year-end.

Sigma managing director Mark Johnson said the work involves site visits, strategy definition and developing low-cost supply chain opportunities for the group in China and India.

The Doncasters contract is another major step forward for Sigma, which opened its Tamworth office last December and its Chinese office in the Junnui district of Chengdu in May. It was set up by former Dunlop Aerospace managers Mark Johnson and Kevin Donnelly, who between them have more than 40 years of experience in global supply chain set-up and management.

The company sees itself as a two-way conduit for Midlands engineering expertise and global supply. Johnson said Sigma introduces “a global mindset” to many in the region, especially SMEs, to help them transform what some see as a threat – low-cost sourcing – into an opportunity.

It helps clients compete in the global marketplace by offering a range of services and support including expanding customers’ CNC capabilities using offshore workers to augment their own programmers. “Using skilled teams in the UK and China, we can both reduce the cost and increase capacity to take on new work,” said Johnson.

Mark Johnson, Sigma Managing Director commented: "This is major step for the whole team at Sigma. Kevin Donnelly, Ocean Xu and the rest of the team have done a great job building our business. We'll now ensure that we do a good job with our client and build a reputation worthy of our ambitions.

New Service for CNC programming

Date: 8th August 2005

New Service ready for pilot customer……

As UK and European suppliers struggle to meet the capacity growth in Aerospace whilst skilled CNC operators become increasingly hard to retain, Sigma is ready to launch a new service to it's customers. From drawing to machine-ready CNC programs using low-cost resource in China.

Using skilled teams in the UK and China, we can both reduce the cost and increase capacity to take on new work. Our UK technical teams meet with a clients Manufacturing Engineering group and agrees machining process and machine details. Our China-based team then complete the CNC programming, freeing up valuable and scarce UK-based CNC programmers to complete 'tape-proving' and first-off production.

Able to accommodate many types of machine control (Fanuc, Siemens, Mazatrol etc.), Sigma is ready to work with pilot customers on a free of charge basis until the value-model is proven.

With up to 15 CNC programmers available in China, capacity increase could be there today!!

Ocean Xu appointed

Date: 17th May 2005

Xu Ocean appointed as Supply Chain Manager……

Sigma have announced the appointment of Xu Ocean (called Ocean) as Supply Chain Manager for their China operations.

Ocean, 28, graduated from Sichuan University in 1999 with a degree in English and Foreign Trade and brings extensive supply chain management experience working for western aerospace companies in both Chengdu and Beijing. Having worked initially in operational roles, Ocean quickly progressed to handling supply relationships with overseas suppliers and parted from UTC’s joint venture Aerotech before joining Sigma.

Kevin Donnelly, Sigma’s Operations Director commented, “This is a key appointment for us as we now progress to grow our team in China. Ocean not only brings a wealth of knowledge about doing business in China, but also has good relationships with many companies. We welcome her to the team and look forward to successful times ahead.”

Chengdu Selected for Offices

Date: 2nd May 2005

Sigma selects Chengdu……

Sigma have selected Chengdu as the location for their office in Western China. Chengdu, the capital of Sichuan Province is the fifth largest city in China with a population of over 11 million and has been attracting significant amounts of foreign investment in recent years. Companies such as Intel, Motorola, Pepsi, Coca Cola and Toyota have set up manufacturing sites in the city, and supporting infrastructure has been developed to satisfy the needs of industry in the city (Chengdu Government Web Site).

Chengdu is one of China’s key Aerospace manufacturing centres and is home to several state-owned aerospace manufacturing facilities as well as other private and joint venture companies. Significant high technology manufacturing capabilities are available locally with many of these organisations already serving a range of western customers. Sigma has relationships established with many of these companies who are looking forward to working with Sigma and western aerospace markets.

Sigma’s office is based in Jinniu district just a few minutes drive from the centre of the city and will ensure that Sigma are able to support the needs of its customers right across the country. The office will be home to Sigma’s growing team in China and will be equipped with high speed communications allowing Sigma to operate on a single web-based network.