£2m expansion brings boost with 70 new jobs

Oct 17 2007 by Andrew Mernin, The Journal

ABRAKE pad manufacturer has announced plans to create almost 70 jobs after securing funding towards its £2m expansion plan.

TMD Friction will create the jobs at its plant in Hartlepool after winning a £249,000 grant from regional development agency One NorthEast.

The cash will go towards the firm’s planned £2m investment into three new presses which will increase the plant’s annual production capacity from 20 million brake pads this year to 25 million by 2008.

The company, which is headquartered in Germany, said the new presses would enable the plant to operate around the clock and would also secure the future of its operations in the North-East.

UK managing director Gerard Doyle said: “This investment has come at a vital stage in our development as it will really help to underpin Hartlepool’s position as an innovative plant, leading the way within the group.

“By investing in new machinery, we can increase plant capacity and create more opportunities within the region and this will have a great impact on the future development of the site.”

Last July, TMD closed its manufacturing plant in Cleckheaton, West Yorkshire, axing more than 200 jobs and transferring around 40% of its annual production capacity to Hartlepool.

Earlier this year, the company opened a new plant in Romania but insists it has no long-term strategy to transfer its production from Hartlepool to the Eastern Bloc. Mr Doyle said: “As a result of our growth, we are currently working alongside our parent company to potentially bring recently relocated work into the Hartlepool plant rather than going overseas.”

The news is a welcome boost to the region’s manufacturing industry, which has suffered a number of setbacks this month.

First came last week’s announcement that US microchip maker Atmel would close its plant in North Tyneside in the new year, making 600 people redundant.

Last week also saw Swedish electronics giant Electrolux begin a two-month investigation into the future viability of its cooker-making factory in Spennymoor, County Durham.

If the firm decides to close the loss-making plant, it will put around 500 manufacturing staff out of work.

In a further blow to the industry, last Friday Hartlepool-based manufacturer Stadium Plastics fell into receivership, throwing the future of its 360 members of staff in doubt.

Ian Williams, director of business and industry at One NorthEast, said the job creation at TMD was a much-needed boost to the region’s manufacturing sector.

He said: “It is really important to help keep this type of manufacturer in the region, and indeed the UK.

“It is particularly encouraging to see new manufacturing job opportunities being created by this investment.”

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