A DARLINGTON engineering company has had its best year ever – despite the economic recession.
Mech-Tool Engineering Limited has recruited 63 extra staff and seen turnover rise by 74pc to £17m.
The company – based in Whessoe Road – specialises in explosion, noise and fire protection technologies.
Frank Vout, director, said: “In an industry that has endured a succession of closures and job losses, reading the business pages has become more like checking the obituary columns.
“It is refreshing to be able to report that here is one manufacturing company which has increased its workforce by 65pc and is promising more new jobs to come.”
The company has secured orders for half its budgeted turnover for 2009 to 2010 and is projecting 18pc growth in the next year.
It is looking to recruit people with specialist design skills and management capabilities to extend its range of services.
Traditionally the company has provided heat shields and blast protection panels for the offshore industry – it still accounts for 30pc of its work.
However, it has also diversified into the oil and gas, nuclear and power industries.
It last month signed a £1.5m deal for an earthquake proof module to be used in the decommissioning process at Sellafield, Cumbria.
It is also close to completing a £4m contract for the accommodation module for the Sea Dragon oil and gas platform.
In January last year, Mech-Tool was restructured into three divisions - fire and blastwall products, modular products and acoustic products - each with its own general manager and team.
Mr Vout said: “Effectively, we have created three small businesses and in each one we have given direct empowerment and ownership to key personnel. Furthermore, people involved in the various stages of a product’s development share the same floorspace, which has created a more coherent team structure.”
It has increased its Darlington floorspace by more than 30pc, allowing work on items up to 70 metres long.
It has also established a second construction and assembly facility on a riverside site in Teesside where large modules can be built and loaded for sea transport. It has increased capacity by 50pc.
Mr Vout, general manager of acoustic products, said the main Whessoe Road premises are being upgraded and extended to reflect the company’s new structure.
The production now has one manager and six team leaders, each responsible for a particular discipline.
“This has had the effect of sharpening focus on quality control and productivity,” he said.
“In turn, by increasing our production capacity, we have created a very hungry mouth to feed, which automatically challenges the sales and marketing functions to become more proactive.”
Phil Dunn, business development manager, said the company wants to recruit specialists to help its expansion into new areas which could include mechanical, electrical, instrumentation and pipework.
He said: “We are exploring new markets in the UK – such as nuclear decommission and new energy – and internationally.
“We have also secured contracts in the US and Canada, and are actively pursuing major opportunities in the Middle East, South-East Asia and in Europe.”
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