Profile: Sypris Solutions Inc (SYPR.OQ)
19 Dec 2014
Sypris Solutions, Inc. (SYPR) is a provider of outsourced services and specialty products. The Company performs a range of manufacturing, engineering, design and other technical services, typically under multi-year, sole-source contracts with corporations and government agencies principally in the markets for industrial manufacturing and aerospace and defense electronics. It organized into two business groups: Industrial Manufacturing Group and the Electronics Group. Through its Industrial Group, the Company is a supplier of forged and machined components, serving the commercial vehicle, offs highway vehicle, light truck and energy markets in North America. Its Electronics Group is organized around two primary business lines: Information Security Solutions (ISS) and Electronic Manufacturing Services (EMS). It provides some of its customers with specialized products, including digital and analog data systems and encryption devices used in military applications and specialty closures and joints used in pipeline and chemical systems.
The Company’s services consist of manufacturing, technical and other services and products that are delivered as part of its customers’ overall supply chain management. It provides customers with services that include software licensing and development, design services, prototype development, product re-engineering, feature enhancement, product ruggedization, cost reduction, product miniaturization and electro-magnetic interference and shielding. It also apply its core technologies to the development and production of its own product line of high assurance security components, including cryptographic key management programs and data encryption and recording products for its United States Government and defense customers.
The Company provides its customers with a range of capabilities, including automated forging, extruding, machining, induction hardening, heat-treating and testing services to meet the exacting requirements. It also design and fabricate production tooling, manufacture prototype products and provide other value-added services for our customers. Its manufacturing services contracts for the truck components and assemblies markets are generally sole-source by part number.
The Company provides customers with a variety of solutions, from prototype assembly to turnkey manufacturing. The manufacturing solutions it offers include design conversion and enhancement, materials procurement, system assembly, testing and final system configuration. Its manufacturing services contracts for the aerospace and defense electronics market are generally sole-source by part number.
Industrial Manufacturing Group (the Industrial Group)
The Company produces train components, including axle shafts, gear sets, differential cases, steer axle forgings, and other components under multi-year, sole-source contracts with Meritor, Inc. (Meritor) and Dana Holding Corporation (DHC), the two primary providers of drive train assemblies for use by the truck manufacturers, including Ford Motor Company (Ford), Freightliner LLC (Freightliner), Mack Trucks, Inc. (Mack), Navistar International Corporation (Navistar), PACCAR, Inc. (PACCAR) and Volvo Truck Corporation (Volvo). It also supply Meritor with trailer axle beams for use by the trailer manufacturers, including Great Dane Limited Partnership (Great Dane), Hyundai Motor Company (Hyundai), Stoughton Trailers, LLC (Stoughton), Utility Trailer Manufacturing Company (Utility) and Wabash National Corporation (Wabash).
Aerospace & Defense Electronics Group
The Company’s ISS business provides solutions in cyber security, secure communications, global electronic key management, Sypris Data Systems branded products, and product design and development to the United States Government, both defense and civilian agencies, international government agencies, as well as worldwide defense and aerospace prime organizations. This group has several long-term contracts with the Department of Defense to design and build information assurance products, including link encryptors, data recording products and electronic key fill devices. Its EMS business is focused on circuit card and full box build manufacturing, space and manufacturing, integrated design and engineering services, systems assembly and integration, design for manufacturability, and design to specification work. A sampling of its customers includes Lockheed Martin Corporation (Lockheed), Northrop Grumman Corporation (Northrop Grumman) and Raytheon Company (Raytheon).
The Company competes with Mid-West Forge, Inc., Spencer Forge and Machine, Inc., Traxle, Celestica Inc., Jabil Circuit, Inc., LaBarge, Inc. and Safenet, Inc.
Sypris Solutions Inc
Suite 450, 101 Bullitt Lane
LOUISVILLE KY 40222