China Staff Changes

RNS Number : 0411W

Xaar PLC

24 January 2012

 



FOR IMMEDIATE RELEASE

24 January 2012

Xaar plc

China Staff Changes

Xaar plc ("Xaar" or "the Group" or "the Company"), the inkjet printing technology group headquartered in Cambridge, announces that its representative office staff in China ("the China staff"), comprising seven employees and two contractors, have resigned with immediate effect. 

At the end of December 2011, the China staff raised some concerns about the perceived unfair treatment of both themselves and some Chinese customers compared to other regions.  The Company undertook a detailed investigation into the concerns, which included allegations that Xaar's pricing and shipment policies had created an unfair market.  Xaar has taken the allegations extremely seriously and, having completed a thorough investigation, has found no evidence to substantiate the allegations. 

However, the China staff rejected the conclusions of the investigation, and have now resigned, despite intensive efforts on the part of the Company over the past two weeks to resolve the situation amicably.

Sales order processing and product distribution of Xaar's technology into China is handled by an independent trading company, and therefore supply channels are not expected to be affected.  At this stage the impact of the resignations is not expected to be material to Xaar's 2012 earnings. 

Short term actions to support Xaar's Chinese customers are being implemented immediately, and an update on the Company's longer term arrangements for China will be provided with its 2011 results announcement on 20 March 2012.

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CONTACTS

Xaar plc:	01223-423663
Ian Dinwoodie, Chief Executive	www.xaar.com
Alex Bevis, Finance Director
Singer Capital Markets Limited:	020-3205-7500
Shaun Dobson
Bankside Consultants:
Simon Bloomfield	020-7367-8888 / 07771-758517

 

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