ASK (Paragon ID) : Paragon ID (ASK) reorganises its manufacturing operations and strengthens its RandD unit

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  Consolidation of manufacturing facilities in France

  
  


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  Strategic refocus of the Sophia Antipolis site on R&D

  
  

As the European leader of identification solutions, in particular in Transport & Smart Cities, e-ID and Traceability & Brand Protection, Paragon ID (ASK - Euronext Paris - FR0011980077) is a renowned and respected industrial player in its markets, the result of the merger between ASK and the Identification and Traceability division of Paragon Group

Paragon ID¹ (ASK) is present in key geographic areas to effectively serve its international customers:

• In the US, with a highly secure manufacturing site located in Burlington, Vermont, particularly specialised in the production of e-covers for US passports;


• In Europe, with around 500 employees, working at manufacturing sites in France, the UK and Romania;


• In Asia, with its manufacturing site in Beijing, China.

As part of the integration plan between ASK and the Identification and Traceability division of Paragon Group Ltd, and to allow the newly created organisation to achieve its strategic goals in terms of growth, a reorganisation of its manufacturing capabilities is essential to ensure the company's competitive edge. 

Following a thorough analysis carried out at the various sites of the company at the end of the first semester of 2017, the Paragon ID¹ (ASK) Board of Directors has agreed to a reorganisation plan centred around the (i) rationalisation and consolidation of its European manufacturing operations and the (ii) strengthening of its R&D expertise.

In France, the operations teams – who were dispersed among several sites - will be regrouped at Argent sur Sauldre to improve efficiency. The R&D team based at Sophia Antipolis will be developed and strengthened. 

Consolidation of the Paragon ID¹'s (ASK) French manufacturing capabilities - to be based at Argent sur Sauldre

In June 2017, Paragon ID¹ (ASK) initiated ongoing discussions with staff representatives for the implementation of a social plan. This plan proposes the consolidation of the manufacturing operations at the Argent sur Sauldre site and the phased cessation of the production followed by the closure of the Mouans-Sartoux site. This closure will lead to the loss of 29 manufacturing positions.

This plan does not forecast any redundancies: all the employees concerned are offered alternative positions at Sophia Antipolis (7 positions) or Argent sur Sauldre (22 positions). Significant measures are in place to support and facilitate the mobility of the employees towards the Centre Val de Loire region.

As per this plan, which has been submitted to the DIRECCTE (French body regulating businesses, competition, job market and employment) for validation, the phased cessation of the production at the Mouans-Sartoux site would be finalised during the first quarter of 2018 (calendar year).

The reorganisation plan includes a reduction in fixed costs linked to the premises, by grouping the teams located in Sophia (R&D, Sales, Marketing and Admin) in a single, more suitable site that will better serve their needs.

Paragon ID¹ (ASK) also plans to continue its outsource strategy for the production of low-end transport smartcards. The group will mobilize the production capacities of its partners, particularly in Asia, in order to increase its industrial agility.

The reorganisation plan aims to improve the industrial competitiveness of the Group as a whole by around €3 million over the full year and will be fully effective as of June 2018. (change in French version)

Strategic refocus of the Sophia Antipolis site on R&D

The implementation of the reorganisation plan starts with the immediate creation of 7 positions in the R&D and quality departments.

Paragon ID¹ (ASK) aims to strengthen the R&D unit at Sophia Antipolis. This will allow the Group to keep its technological leadership in security and in the creation of contactless (RFID) solutions, while developing its know-how in smartphone apps (HCE), data management, and NFC authentication solutions.

As a result of the reorganisation plan, Paragon ID¹ (ASK) will have strengthened its Sophia-Antipolis and Argent sur Sauldre French sites. By refocusing the activities of each site, the Group intends to:

• strengthen its competitiveness by consolidating its manufacturing operations while at the same time outsourcing the production of low added-value products;


• enhance its offer to cities worldwide with a complete package including: Enrolment of subscribers or occasional travellers, personalisation of transport tickets, remote activation of contactless tickets on smartphones, and client database management

Julien Zuccarelli, Managing Director at Paragon ID¹ (ASK), says:

« It is essential that Paragon ID¹ (ASK) adapts to fit its markets and the competition and remain a competitive supplier.

The reorganisation of our operations is only the first step in our plan. We are going to enhance our offer, in particular to cities and transport operators, who will benefit from a wider range of services.

With this plan, Paragon ID¹ (ASK) shows it is striving to adapt to an evolving market with the ambition, shared by all our staff, to capture the potential offered by our markets and in particular the endless opportunities brought by NFC as well as the convergence in the banking world. »

About Paragon ID (ASK)

Paragon ID¹ (ASK) has been created following the merger, at the end of April, between ASK and the Identification division of Paragon Group. Paragon ID¹ (ASK) is a leader in identification solutions in the e-ID, transport & smart cities and traceability & brand protection sectors.

Employing more than 600 staff, Paragon ID¹ has manufacturing sites in three continents (US, Europe and Asia), close to its customers.

ISIN code: FR0011980077 - Mnemonic code: ASK - Number of shares: 58,286,819

More informations : ASK-Contactless.com

Contacts

Paragon ID¹ (ASK)

Marketing Manager

Stephanie Girard

Tél.: +33 (0)2 48 81 61 14

[email protected]
ACTUS finance & communication

Investor relation

Mathieu Omnes

Tél. : +33 (0)1 53 67 36 92

[email protected]
ACTUS finance & communication

Press relation

Jean-Michel Marmillon

Tél. : +33 (0)1 53 67 36 73

[email protected]

Source: Actusnews