Label company expanding to meet growing demand

Nov 13 2007 by Karen McLauchlan, Evening Gazette

A COMPANY that produces millions of labels for the food, electronics, health and steel industries in the UK and Europe is expanding to meet the growing demand for labels that incorporate identification chips.

First Choice Labels, set up five years ago in UK Steel Enterprise’s Innovation Centre on the Kirkleatham Business Park in Redcar, has invested £55,000 in a new press that can insert a RFID (radio frequency identification) chip into individual labels.

The system means companies can identify and track everything from huge packing crates to expensive items or even individual library books with a simple scanning device.

First Choice Labels says it is the only company in the region with the facility to produce this type of label in-house.

“We see it as a major area of growth for us,” said managing director Nigel Willis, “and it will take the company into the next stage of its development.”

First Choice Labels has expanded steadily since starting up in 2002 and now occupies two of the largest workshops in the Innovation Centre, operated by Corus-subsidiary UK Steel Enterprise. The workforce of eight is set for further expansion in the near future.

With an enviable client list from an increasing range of sectors, the business is involved in producing labelling for Corus as well as brands such as Fosters Lager, Kronenberg 1664 and Smirnoff.

The company developed a label that is spotted by a metal detector if even the tiniest shred is introduced into foodstuffs and also produces a plasticised label that cannot be torn or affected by chemicals.

In 2005, First Choice Labels won a prestigious contract with Corus Teesside Cast Products by developing a labelling system that could withstand the demands of a wide range of temperatures as well as frequent handling and loading for a number of months. It led the company into a lucrative niche market in slab steel labelling with orders from Corus in Holland and Belgium’s national steel company Duferco. Discussions are now in hand with major steel manufacturers in Germany, Italy and Mexico.

“Winning that initial Corus contract was crucial in opening up this area for us,” added Mr Willis. “It is especially pleasing because we have been so well supported by UK Steel Enterprise - a subsidiary of Corus - since the very beginning.”

Simon Hamilton, regional manager for UK Steel Enterprise, said: “First Choice Labels is one of around 80 highly successful companies that are flourishing in our two Innovation Centres in Tees Valley. The quality facilities, competitive rents and flexible terms are all designed specifically to support new and growing businesses. We have watched First Choice Labels expand steadily and are confident the company will continue to grow.”