Unitronics Industrial Automation(EuroNM:UNITB; TASE:UNIT), controlled by CEO Haim Shani, is continuing its development of automated warehouses. The company yesterday announced that it had signed a contract to deliver an automated logistics system for NIS 2.5 million to a customer who bought a similar system in 2001.
The system includes control systems, automated storage management software system, and an automated cargo handling system. Under the contract, the system to be installed will be based on the company's Programmable Logic Controllers (PLCs) and other software and control systems. Unitronics will also use subcontractors to supply various components for the project, which is due to be carried throughout 2005 and be completed in the fourth quarter. Payments will be made on the basis of milestones.
Shani said, "The field of automated logistics systems has revived in recent years, including for small and medium-sized enterprises. For an investment of €500,000, businesses can now set up an automated warehouse, thereby saving the cost of renting or buying storage space and hiring forklift drivers. An automated warehouse in built to height, rather than width, which means that it needs less space than an ordinary warehouse.
Shani added, "Our average profit margin for the systems is now over 20%. We will earn a similar profit margin on the current project."
In recent years, Unitronics has won other important contracts for logistics and control systems from leading industrial companies. Unitronics has participated in the building and upgrading of systems for many companies, including Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA), Maman Cargo Terminals and Handling (TASE:MMAN), Taro Pharmaceutical Industries (Nasdaq:TARO), Strauss-Elite (TASE:STEL), Israel Aircraft Industries (IAI), Tnuva (Rehovot), Home Centers DIY, and Shalem Packaging Products (1998) Ltd.
Unitronics posted NIS 44 million in revenue in January-September 2004, 57% more than in the corresponding period of 2003. Half the revenue came from the sale of logistics systems.
Published by Globes [online], Israel business news - www.globes.co.il - on January 11, 2005