Machine tool manufacturer 600 Group has pulled back from outsourcing production to China because of the poor levels of quality and consequent warranty claims.

Quality problems have led 600 Group to drop its stategy of sourcing from China Releasing details of its recent significant restructuring and new product supply arrangements CEO David Norman said: “At the time of my appointment in August, it was clear that both the cost infrastructure of the Group and the machine tools’ supply chain were in need of urgent attention. Considerable action has subsequently been taken and continues to be required to effect transformational change within the Group’s operations, whilst concurrently taking additional defensive actions in light of depressed market conditions.” Link for full article.