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Tyneside metal fabrication firm AAP snapped up in £1.8m deal

2025-03-27 12:18:14 By

A South Tyneside metal fabrication firm has been snapped by a Sussex business in a £1.8m deal.

Jarrow-based AAP has been acquired by Eastbourne company DINH Ltd in a move which will see its directors retire with immediate effect. AAP, which is based on the Bede Industrial Estate, was established in 2009 and provides metal fabrication services for the subsea, offshore and renewables sectors.

New owners, Gordon Watt and Jeremy McLeod-MacKenzie at DINH, say the acquisition will provide a strong fit with another of their businesses, Washington Waterjet Ltd (WWJ). Terry Hall, who is MD of WWJ, will also become the managing director of AAP, with the company’s current general manager taking charge of day-to-day operations.

Mr McLeod-MacKenzie said: “AAP has developed a strong reputation for supporting local clients with innovative solutions in a timely manner. This has resulted in the development of a loyal customer base that considers AAP a critical supplier. There is still huge potential to extend AAP’s geographical reach and continue its development and growth, with focus to date having been on their local marketplace.”

Two new jobs are set to be created over the next 12 months, with the new owners aiming to increase revenue. South Yorkshire-based Finance For Enterprise (FFE) provided £250,000 of funding to DINH Ltd to support the acquisition, with the remainder coming from a combination of cash, invoice finance and deferred consideration.

The deal marks the first usage of FFE’s new £25m facility, recently announced as part of the £62m CIEF funding provided by Lloyds Bank and Big City Capital. The deal was introduced to FFE by Pegasus Funding Solutions.

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Manufacturing2025-03-27 12:18:14

British Steel seals permission for new Scunthorpe furnace as part of £1.25bn decarbonisation plan

British Steel has been granted planning permission to build an electric arc furnace at its Scunthorpe headquarters following a tight vote by councillors. The firm’s application, which forms part of its £1.25bn decarbonisation plan, was approved by North Lincolnshire Council following a detailed consultation period. The vote was tied with four-apiece, until chair Coun Nigel Sherwood’s decisive casting vote, after he saw no planning grounds to refuse it. The positive decision comes soon after a similar application was agreed to build another Electric Arc Furnace (EAF) at Redcar, on Teesside, a move which represents the manufacturer’s biggest transformation in more than 100 years of steelmaking, reviving a traditional industry in the region while also introducing more sustainable, modern technology. However, British Steel – owned by Chinese giant Jingye since 2020 – has reiterated that its transformation to replace its coke blast furnaces at the two sites is “subject to appropriate support from the UK Government”. The Government has offered £300m of investment to British Steel to aid the plans and talks between Jingye and the Government have been continuing. Tata Steel has also secured a support package of £500m from the Government to aid its switch to electric at Port Talbot. British Steel President and CEO Xijun Cao said: “We’re extremely pleased to have received planning permissions to build Electric Arc Furnaces at our Scunthorpe and Teesside sites. It is a significant step forward in our journey to net zero and we thank everyone who has supported our plans. The proposed installation of EAFs in Scunthorpe and Teesside is central to our journey to a green future as they would help us reduce emissions of CO2 by more than 75%. However, it is crucial we now secure the backing of the UK Government. “Our owner, Jingye, is committed to the unprecedented investment decarbonisation requires and our desire to dramatically reduce our carbon footprint, coupled with challenging market conditions, means it is imperative swift and decisive action is taken to ensure a sustainable future for British Steel. We are committed to working with the UK Government and need to reach an agreement quickly so we can achieve our ambitious goals, secure thousands of jobs and keep making the steel Britain needs for generations to come.” Significant preparation works, including environmental and technical studies, and equipment selection, are now under way and the EAF could be up and running as early as December 2025. The company proposes maintaining current operations until a transition to electric arc steelmaking. Unions have previously warned of large scale job losses at Scunthorpe, which currently employs more than 3,200 people, if the plan proceeded. British Steel has started preliminary talks with trade unions about electrification, and has promised to support employees affected by its decarbonisation plans.

Manufacturing2025-03-27 12:18:14

Pharmaceutical manufacturer Pharmaron's Cramlington base set for investment despite losses

Losses have narrowed at Cramlington's Pharmaron amid a year of continued investment in the site. New results for the Chinese-owned business - formerly called Aesica - show operating losses fell from £24.4m to £13.7m in 2023 as revenues rose from £5.09m to £7.48m. Bosses said the Windmill Industrial Estate firm, which specialises in the production of active pharmaceutical ingredients, has the backing of its parent company, Beijing-based life sciences giant Pharmaron, in planned expansion. The firm has posted operating losses since 2020 when it suffered a temporary shutdown of all production owing to a "significant, unexpected incident". But that has not stopped Pharmaron, which acquired the facility in early 2022, from eyeing development of the site, which employs about 140 people. Read more: ScS boss Steve Carson to step down having steered retailer through Italian takeover Read more: North East technology entrepreneurs come together for new firm In the latest accounts, Pharmaron said it was reviewing plans to develop the Northumberland location and that it had approved £5m of investment into the 177,000 sqft factory, including its technical capabilities. The firm said it has a long term ambition to improve the flexibility of the site meaning it can accommodate shorter production runs as well as long term contracts Elsewhere in the accounts, directors pointed to a number of exceptional items that made up recent losses but which it said did not reflect underlying performance. Those included £4.3m of costs associated with Pharmaron's acquisition in 2022; a £1.2m hit created by mutual agreement with the firm's largest customer to cancel its contract and stop production, again in 2022; and in 2023, releases of an onerous contract liability totalling £100,000. During the 2023 year under review, the plant drew the majority of its revenue from the UK market (£3.1m), a change on the previous year when the UK constituted only £1.2m of revenue and the rest of the world made up £2.5m, compared with £1.5m last year. In documents attached to the accounts, Pharmaron director Stephen Lewinton said: "The long-term strategic plan for the site is to increase operational flexibility, so that both shorter production runs as well as semi-continuous and long-term production can be supported, to service a wider group of clients. This will involve reconfiguration of both operations and infrastructure over a period. The business development team will work closely with the site to maximise the potential revenue streams available.

Manufacturing2025-03-27 12:18:14

Prima Cheese expands into London amid ambitions to grow overseas trade

Food firm Prima Cheese has expanded into London with a new office and retail space amid efforts to boost international trade. The County Durham dairy specialist, which specialises in shredded cheese for pizza toppings, has opened new premises in north London via its property company Prima Projects. 'Prima South' is located on Islington's Holloway Road in The Billiard Factory property which is home to a number of creative businesses and adjacent to the National Youth Theatre. It says the move is part of plans for growth in 2024, including pursuing more overseas trade opportunity. Prima already exports to 50 countries and in 2023 generated turnover of more than £18.7m outside of the UK. Read more: North East betting tech firm AceOdds snapped up in £36m deal by Danish group Read more: Electric powertrain specialist Saietta failed with deficit of £2.89m, administrators say Last year Prima featured for the fifth time in the North East's Fastest 50 list of fast-growing, privately owned businesses. It also reported "change and innovation" across the business as it invested amid a rise in turnover. In the year to March 31, 2023 it grew turnover by 32% to £121.7m. Over the same period, operating profit fell to £3.7m from more than £5m, though the firm grew its headcount slightly to 166. The acquisition of the Prima South space was advised by Sintons' partner Alok Loomba, partner, supported by Chris Jackson, senior associate. Mr Loomba, a long time advisor to Prima, said: "Prima Cheese was founded in 1996 and since then it’s grown to become one of the UK’s leading cheese processing businesses, exporting to countries around the globe. Prima’s is a real success story and the acquisition of this new site in London marks a significant milestone in its growth, opening doors to new markets in the UK and beyond.” Nagma Ebanks-Beni, co-CEO of Prima Cheese, said: "More than 25 years ago, Prima started operating out of a small industrial unit in County Durham; but we had big plans and today we’re one of the largest exporters in the North East. Our new London base is a key part of our growth strategy and Alok and his team moved quickly to help us secure the premises we wanted in what was a competitive and fast-moving environment."

Manufacturing2025-03-27 12:18:14

New chair for engineering firm Spirax-Sarco

FTSE-100 engineering firm Spirax Group has announced the appointment of a new chair. Tim Cobbold will take over from Jamie Pike, who is retiring from the Gloucestershire-based company on December 31. Mr Pike has been a non-executive director with the Cheltenham-headquartered thermal energy management and niche pumping specialist since 2014 and its chair since 2018. Mr Cobbold will join the board as a non-executive director and chair designate from September 1 and will succeed as chair of the board and nomination committee on January 1, 2025. The former chief executive of UBM will receive a pro rata standard non-executive fee of £70,000 for the period between September 1 and December 31, 2024. From January, he will receive an annual fee of £400,000 for his role as chair. Nimesh Patel, group chief executive, said: "We are grateful to Jamie for his contribution over the last decade to establish our group's strong foundations, leaving us well positioned for the future." Mr Cobbold will continue as chair of manufacturing firm TI Fluid Systems but will step down as a director of industrial flow equipment firm Rotork from December 31, Spirax Group said. "Tim's broad business experience with global industrial companies, as well as his experience as CEO of three FTSE listed businesses with a strong track record of value creation through growth and operational delivery, will benefit the further development of Spirax Group," Mr Patel added. "look forward to working with him as we continue to evolve our group." Like this story? Why not sign up to get the latest South West business news straight to your inbox. Mr Cobbold's appointment is subject to election as a director at the company's annual general meeting in May 2025.

Manufacturing2025-03-27 12:18:14

Caravan manufacturer Erwin Hymer sees losses grow amid difficult market

A North East caravan manufacturer which announced nearly 200 job losses in a difficult market has published results which show growing losses. Consett-based Erwin Hymer, which makes the Xplore, Elddis and Buccaneer caravan brands, said earlier this year that it was looking to cut 191 posts in a bid to reduce overheads in a declining market. The company had employed more than 500 people at its Delves Lane operation. Now the company’s UK operation - part of US group Thor Industries - has published accounts for the year up to July 31, 2023, which show that, while turnover increased from £95.2m a year earlier to £106.4m, its operating losses grew from £4.6m to £5.5m. Go here for more North East business news In the accounts, managing director Chris Short said the company had had a “challenging business year” and highlighted a previous business restructuring. He said the company had frozen prices but rising supply chain costs had resulted in a loss. But he said the company had a strong order book and was committed to innovating in its product range. Mr Short added that the supply of chassis for its vehicles - which had been highlighted as a challenge in previous accounts - had improved but there was still some uncertainty around supplies for its UK production facilities. He said that the combination of cost increases, general economic conditions and increased interest rates were the main threat to the business. In a statement, Mr Short said the challenges facing the company were common to the wider UK caravanning industry and that measures to restore profitability were “crucial to the long-term sustainable future of Erwin Hymer Group UK Ltd.” He said the company was tracking retail sales and stock on dealers’ forecourts as well as external factors impacing on general recreactional vehicles sales. He added: “As we enter the industry’s new season, our new engineering comes to the fore, with advanced design reflecting the wants and needs of our customers – in every market segment. In this, our 60th Anniversary year we will unveil our all-new portfolio of vehicles at The Motorhome & Caravan Show at the National Exhibition Centre, Birmingham in October 2024 including class-leading new Elddis Avante touring caravans and innovative new Xplore campervans.

Manufacturing2025-03-27 12:18:14

Electric powertrain specialist Saietta failed with deficit of £2.89m, administrators say

Electric motor maker Saietta's Sunderland operation collapsed with a deficit of £2.89m, new documents show. The developer of powertrain systems for smaller electric vehicles such as scooters and rickshaws called in administrators earlier this year after failing to find a buyer amid cashflow issues. Bosses took the decision after an anticipated contract to build electrical steering pumps at the firm's Wearside site fell through and start dates for other pieces of work were delayed. The difficulties came only months after AIM-listed Saietta secured £6.5m in equity funding - a sum that was expected to give it enough working capital to continue trading to March this year. Further fundraising was expected after the new work commenced, but on March 4 chairman Tony Gott announced to shareholders that while there had been genuine interest in the business, no viable offers were made which would allow it to continue trading. Read more: Inside Nissan's Sunderland factory as the new Qashqai rolls off the production line Read more: North East appliances manufacturer Ebac signals 'significant' drop in trade Accounts for the wider Saietta Group, covering the year to the end of March 2023, show operating losses of £19.3m on revenue of £2.1m. Having acquired the former ZF factory at Houghton-le-Spring in 2021, and taken on some of the firm's staff, Saietta aimed to build on its research and development activity to produce up to 100,000 electric propulsion motors each year. But with a sale process having failed, insolvency specialists from EY were appointed at the same time Saietta confirmed its shares on the London Stock Exchange would be suspended. At the time, Mr Gott said: "Despite all other aspects of the business remaining in progress and following major restructuring throughout the business over the last 12 months we were unable to provide the capital required, on a timely basis, to complete the journey to bring the Group to a self-financing position." Newly published documents covering show a list of around 23 creditors owed more than £3.1m, including a majority owed to other Saietta Group companies. The administrators estimate a deficiency of around £2.89m. A separate progress report, made public earlier this month, includes detail on the lead up to the collapse. Administrators at EY said: "Initially a discreet marketing process was commenced, limited to six parties, following guidance in respect of the AIM rules. However, by February 22 2024, with no immediate proceedable interest from the initial process, the directors of Saietta Group Plc decided to open the process to the wider market and a regulatory news service announcement (RNS) was issued stating that the group was undertaking a formal review of its strategic options, as without further funding the group was at risk of becoming insolvent.

Manufacturing2025-03-27 12:18:14

Major manufacturer Legrand mulls Northumberland expansion which could create scores of skilled jobs

A major manufacturer is exploring options for expansion into the North East in moves which could create scores of new skilled jobs. Legrand already has six bases in the UK, including its Birmingham headquarters and sites in Wembley, Scarborough and Consett, but planning documents show that the company is looking for a new base set closer to the offshore renewable energy sector. The company, part of the global French-owned Legrand group which turned over €2.03bn in the first quarter of this year, is an electrical and digital infrastructure with its 800 UK employees working across four business units including cable management, critical power, digital infrastructures, and working and living spaces. Read more: Footwear firm Charles Clinkard announces two North East store closures Read more: North East betting tech firm AceOdds snapped up in £36m deal by Danish group In plans which could see it launch in the region, Legrand has applied for permission to build a new manufacturing facility at Nelson Park in Cramlington, Northumberland. The firm has enlisted FaulknerBrowns architects and Lichfields planning consultancy to secure planning permission for the plant, which will include a manufacturing building, associated service yard, car parking, access and soft landscaping. The site would cover 40,009 sq ft with a 17,006 sq ft service yard and 107 car parking spaces. This would include accessible spaces, EV charging points and motorbike spaces. It is understood the firm has not made firm plans to open in Northumberland, but Lichfields’ opening letter to planners says the move would create 200 jobs. The letter says: “In order to facilitate the relocation of Legrand, a global specialist and digital infrastructure company, to Cramlington, a manufacturing facility is proposed at the site. Legrand employs 38,000 people worldwide, and approximately 800 people in the UK. “Legrand are currently based in Wembley in the UK but are seeking a new base in closer proximity to the offshore renewable energy sector and associated skills base in South East Northumberland. The relocation from London to the North East would provide synergy and shared skills with existing facilities in Blyth as well as creating skilled jobs in Cramlington. The proposed manufacturing facility at Nelson Park would facilitate the relocation of Legrand to Northumberland and create around 200 new jobs.”

Manufacturing2025-03-27 12:18:14

Plastic parts manufacturer merges with 100-year-old firm

A Somerset-founded plastic parts manufacturer has merged with a 100-year-old Worcestershire moulding business. Merriott Plastics was founded in the South West and now has factories in Crewkerne and Rochester, in Kent, while Talisman’s plant is based in Malvern. The firms said the new multi-site business would deliver product development, manufacturing, logistics and technical support, particularly in the Midlands, South West and South East regions. Shaun Champion of Talisman - known as LGG Charlesworth until 2018 - and Andrew Lawrence of Merriott Plastics will jointly lead the new business. Mr Lawrence said: “We are truly delighted to announce this historic merger, bringing both these industry names together in the service of our customers and for UK manufacturing, while also honouring the legacy tradition that has brought us together.” Merriott Mouldings began operations in Merriott, Somerset, in 1938, and ICM in Rochester in 1947. Both companies are members of the British Plastics Federation. Law firm Wilkes facilitated the merger on behalf of Merriott Plastics. Rick Smyth, partner at Wilkes, said: “We are delighted to work with Merriott again. This deal showcases our commitment to developing long-lasting client relationships and our capability to deliver significant transactions.” The Wilkes corporate team working on the deal included Rick Smyth, partner; Lucy Freeman, senior associate; and Matt Workman, solicitor. The Wilkes real estate team included partner Mark Hodgson and senior associate Leighann Richards.

Manufacturing2025-03-27 12:18:14

Cranswick hails recovery in demand leading to higher earnings

A more stable environment for farmers has helped FTSE250 meat producer Cranswick to boost revenue and profits. Fresh results for the Hessle-based manufacturer, covering the year to the end of March, show the pork and poultry specialist managed to maintain pig volumes despite a significant reduction in national numbers. Investors on the London Stock Exchange were told Cranswick saw recovery in demand after last year's initial inflation shock as customers plumped for its premium products. It meant reported revenue growth of 11.9% to £2.59bn and a 23.6% rise in adjusted group operating profit to £185.1m while statutory group operating profit rose 14.3% to £166.9m. That was part of a year in which Cranswick ploughed £46.1m into expansion with the acquisition of pig farming business Elsham Linc and meat processor Froch Foods. Read more: Asda reports increase in sales through more convenience stores Read more: Rolls-Royce to build and test nuclear reactor parts in new facility Chief executive Adam Couch said the moves had helped build the firm's self sufficiency, increasing the "size, scale and quality" of its pig herds. He also said the strong performance came in the face of sizeable challenges, particularly Cranswick's access to labour, which could be further hampered by the Government's introduction of a higher salary threshold for immigrants on Skilled Worker visas. The firm called on the Government to appreciate the scale of the challenges with chairman Tim Smith suggesting it should "better concentrate its resources" on improving resilience to national food security and financial issues for producers. In response to labour challenges, the firm said it had expanded its recruitment programme - bringing in 650 workers from the Philippines. Elsewhere, the group reported a fall in net debt, from £101.4m to £99.4m. A final dividend of 67.3p per share was proposed - a 14.5% rise on last year. Mr Couch said: "Our ongoing successful performance is down to the unwavering passion, commitment, and professionalism of our teams across the business. I would like to extend my gratitude to all of our colleagues at Cranswick for their continued dedication and support which has enabled us to deliver a strong set of results and make progress towards our strategic objectives. "Alongside our colleagues, I would also like to thank our suppliers and customers, with whom we continue to work in close partnership. Our successful performance owes a great deal to the substantial investment we have put into enhancing our farming infrastructure and expanding our vertical integration. We have increased the size, scale and quality of our pig herds through ongoing organic growth and the acquisitions of new indoor and premium outdoor pigs.

Manufacturing2025-03-27 12:18:14

Stelrad warns of slowing sales but sees signs of recovery in core countries

Radiator group Stelrad has warned of a decline in sales around the world but says it is seeing “early signs of recovery” in some countries. The Newcastle-based firm, which has its main manufacturing base in South Yorkshire, has released a trading update ahead of its annual general meeting, saying that trading this year has been in line with management expectations. Stelrad said in March that subdued new build and renovation activity in the housing market, caused by high inflation and interest rates, had impacted on its sales, with revenues down 12.9% on a like-for-like basis. In today’s trading update, the company said that its “end markets remain challenging, with further year on year volume declines across most geographies.” But it said that it was seeing “early signs of recovery in some core territories” and that its financial performance remained strong, thanks in part to cost savings undertaken last year. Chief executive Trevor Harvey said: “Stelrad has had an encouraging start to 2024 with management’s experience, aided by the flexibility of our business model, helping to successfully navigate ongoing tough market conditions while underpinning our confidence in delivering on our full year expectations. “Having further consolidated our place as market leader of both the steel panel radiator category and the hydronic heat emitter market across Europe, the UK and Turkey, Stelrad’s initiative to expand its portfolio of higher margin, higher heat output radiators, which have a long-term role to play in the delivery of lower carbon domestic heating, has driven a 6% increase in Stelrad UK’s first quarter 2024 average heat output per radiator, relative to the prior year. This has had a positive impact on both average selling price per radiator and margin percentage. “The group remains well positioned for market recovery and the structural tailwinds from decarbonisation. We are confident in our ability to continue growing market share and delivering long-term, increasing value for all our stakeholders.” Stelrad, which can trace its history back to the 1930s, employs around 1,300 people worldwide, with bases in the UK, Italy, the Netherlands, Denmark and Poland. It is the leading radiator seller in the UK, Ireland, France, the Netherlands, Belgium, Denmark and Greece. The company listed in the Stock Exchange in 2021.