Canada-based Inventronics Limited, a designer and manufacturer of custom enclosures, has announced a decision to divest itself of its

British subsidiary, Eurocraft Enclosures Limited, in response to what has become a prolonged downturn in global communications sector spending.

Inventronics purchased Eurocraft in early 2001 for the strategic purposes of serving its largest North America-based customer in the United Kingdom, diversifying Inventronics' customer base, and increasing Inventronics' overall sales and income. Now, said the company, the global telecommunications downturn has eliminated the outsourcing needs in the UK of that North America-based customer, and a number of "blue chip" companies that were to be Eurocraft's largest customers in 2001 and 2002 are in either financial difficulty or bankruptcy.

"Accordingly, Eurocraft is no longer meeting Inventronics' strategic needs and we are working with its management to effect a divestiture," said Dan Stearne, Inventronics' President and CEO, in announcing the

divestiture decision.

inventronics said it plans to write down its entire investment in Eurocraft in its second-quarter financial statements, which will be made available by late August.

Inventronics' common shares are listed on The

Toronto Stock Exchange under the symbol "IVT."

July 30, 2001:
Inventronics increases revenues 47%, reports profits for Q2