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Expansion plan as markets recover
A 180,000 sq ft West Yorkshire engineering plant has become the European hub of a leading UK machine toolmaker and is set for expansion as world markets recover.
Lathe and components maker the 600 Group is expanding manufacturing at its Heckmondwike plant, which employs around 150 people, following a collapse in sales a year ago due to the recession.
Group chief executive David Norton, who joined the company in 2008, instigated a review of operations for the £50 million turnover business, which exports 80 per cent of its products.
The Spen Valley site also distributes all spare parts for Europe and houses ‘back office’ operations such as finance, sales and marketing.
Mr Norton said the past year had been “ a white knuckle ride” after 600 Group sales fell 38 per cent in the worst downturn he had ever experienced.
He said: “This time last year we operated from 35 locations and needed to get costs under control quickly. We have worked hard to achieve this, and since then have taken out around £12 million of costs and increased gross margins by four per cent.”
The process involved reducing the global workforce by one-third, including closing an East Midlands manufacturing site and transferring operations to Heckmondwike.
The 600 Group now focuses on three divisions – machine tools, laser marking and a waste handling and equipment operation in South Africa, which was benefiting from preparations for next year’s soccer World Cup.
The machine tools operation is based at the original site of lathe maker T S Harrison, which joined the 600 Group in 1971 and whose brand is still used along with another market leader, Colchester lathes.
The company is the UK’s largest machine tool manufacturer and sells its products to 180 countries. Products include traditional and CNC lathes as well as teaching lathes used by apprentices in colleges around the world.
A product development team has been created for the machine tools division to focus on product strategy and new product development for global markets. Headed by engineering director Jonathan Wright, it comprises Mike Berry, newly-promoted managing director of 600 Europe; Don Haselton, president of 600 North America; and Phil Cullen, marketing manager.
Mr Norton said: “We acted quickly to tackle the serious situation we were in and we now have a stable position which will enable us to take advantage of the recovery when it comes.
“We are much more confident than 12 months ago, even though the market remains tough. I believe the 600 Group is now in a good position to go from strength to strength.”
http://www.thetelegraphandargus.co.uk/business/4737309.Expansion_plan_as_markets_recover/
Lathe and components maker the 600 Group is expanding manufacturing at its Heckmondwike plant, which employs around 150 people, following a collapse in sales a year ago due to the recession.
Group chief executive David Norton, who joined the company in 2008, instigated a review of operations for the £50 million turnover business, which exports 80 per cent of its products.
The Spen Valley site also distributes all spare parts for Europe and houses ‘back office’ operations such as finance, sales and marketing.
Mr Norton said the past year had been “ a white knuckle ride” after 600 Group sales fell 38 per cent in the worst downturn he had ever experienced.
He said: “This time last year we operated from 35 locations and needed to get costs under control quickly. We have worked hard to achieve this, and since then have taken out around £12 million of costs and increased gross margins by four per cent.”
The process involved reducing the global workforce by one-third, including closing an East Midlands manufacturing site and transferring operations to Heckmondwike.
The 600 Group now focuses on three divisions – machine tools, laser marking and a waste handling and equipment operation in South Africa, which was benefiting from preparations for next year’s soccer World Cup.
The machine tools operation is based at the original site of lathe maker T S Harrison, which joined the 600 Group in 1971 and whose brand is still used along with another market leader, Colchester lathes.
The company is the UK’s largest machine tool manufacturer and sells its products to 180 countries. Products include traditional and CNC lathes as well as teaching lathes used by apprentices in colleges around the world.
A product development team has been created for the machine tools division to focus on product strategy and new product development for global markets. Headed by engineering director Jonathan Wright, it comprises Mike Berry, newly-promoted managing director of 600 Europe; Don Haselton, president of 600 North America; and Phil Cullen, marketing manager.
Mr Norton said: “We acted quickly to tackle the serious situation we were in and we now have a stable position which will enable us to take advantage of the recovery when it comes.
“We are much more confident than 12 months ago, even though the market remains tough. I believe the 600 Group is now in a good position to go from strength to strength.”
http://www.thetelegraphandargus.co.uk/business/4737309.Expansion_plan_as_markets_recover/
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